| Summary: | 碩士 === 國立虎尾科技大學 === 經營管理研究所 === 101 === Economy and finance seem to be often associated concepts. Many researchers on over the world are attracted by this relationship. This study evaluates the empirical relationship between the financial development and the economic growth for three Asian economies which have significantly different characteristics: Taiwan, China and Thailand from 1991 to 2010. This study focuses on banking and stock market indicators, which measure financial development and structure, monetary and the degree of international capital mobility in the economic process of Taiwan, China and Thailand. The authors use the annual data from 1991 to 2010 as well as the principal component analysis and linear regression to estimate results. This study provides little support to the view that finance has effect on economic. The authors also reduce gaps found in the literature when applying the theory of the impact of financial development on economic growth to three different economies. Besides, the authors hope to contribute to these countries to find which indicators will be important to economic growth. Then they will have right polices to growth their own economies. This study finds that: the effects of financial development on economic growth in these economies are significantly different. High investment had contributed in Taiwan and China while it may not affect to Thailand. The government consumption and the growth rate of real export had a positive role in economic growth in all these economies. The finance-aggregate, which representative by the banking structure indicators, had a significant positive effect on Taiwan and Thailand; but played a negative role in China causing by the tightly financial policy of Chinese government. The market size seemed not accelerate economic growth. However the stock return would impulse the growth of economy. The two period of financial crisis did not affect the economic growth in Taiwan and China, but it negative strongly impacted on Thailand’s economic growth. Capital outflow could bring back the benefit for Taiwan economy. But capital inflow implied the opposite, while the capital inflow had contributed in China economic growth.
This study leads to some interesting implications: the first one relates to the role of financial development in economic growth. This study also proves the theory developed by Schumpeter from 1911 for the effect of financial development on economic growth. Secondly, this study has a contribution when applying to different economies which have strong differently characteristics in both economic and finance or even political system. The authors find that there are significant differently reflects of the impact of financial development on economic growth of Taiwan, China and Thailand. Moreover, as what can be seen in above discussion, the financial crisis will not be a threatening factor to the economic growth in Taiwan and China due to the huge economy of China and the sustainable development of Taiwan’s finance.
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