Analysis on the Track of Chinese Financial Development and Economic Growth

This paper discussed the long-run relationship between financial development and economic growth of china is examined in a multivariate vector auto regression (VAR) framework. And validate whether the economics of china according with hypothesis brought forward by the economist of Yale University Hugh T. Patrick. And the hypothesis was from two theories; one is "demand-following"; the other is "supply-leading". The conclusion of this paper examines the economic growth of China is true of the hypothesis.