An Analysis on the Effect of the Chinese Sectors' Financial Assets Change on the Economic Growth

Based on the data of the cash flow statement in SNA, by empirically analyzing the relationship between the change of Chinese sectors' financial assets and economic growth, the paper concludes that the households' financial assets have influence on the economic growth. Further, in the framework of Permanent Income Hypothesis and Life-Cycle Theory, by using co-integration test and Error Correction Model, the wealth effect on economic growth of all kinds of financial assets held by Chinese households is ana-lyzed. On the basis of above empirical results, the paper puts forward suggestions on improving financial efficiency in order to promote economic growth.