Impact of financial crisis on the economic growth of China

摘要

The current financial crisis has a significant effect on the economic development of many countries. The paper analyses the transmission of global financial crisis to the economic growth of China. Applying dynamic correlation, the paper utilizes Granger Causality Test to investigate the relationship between financial system and economic growth, so as to find out whether the shocks from financial system could be transmitted to the economic growth of China. Thus, it could be concluded whether the current financial crisis has made a substantial impact on the economic growth of China. The paper points out that the link between financial system and economic growth of China is rather weak so that conclusion could be made that the financial crisis has no serious impact on the economic growth of China.