Venture Capital analysis of the role of China 's economic growth
|Keywords||Venture Capital Economic Growth High-tech Industry|
Venture Capital has only existed in China for a short time, so whether with or without role in promoting China’s economy growth is currently what people concern. This paper first introduced about the different meanings of Venture Capital between China and the West, including meanings from Western U.S. Venture Capital National Association, the Organization of Economic Cooperation and Development, China’s State Council documents and definition from famous economist Siwei Cheng. Comparing these definitions, China’s Venture Capital uniqueness can be summed up. In economic growth theory, the main factors impacting on economic growth are:technological progress, human capital and labor, capital accumulation. To get conclusion for whether on earth Venture Capital have impact on economic growth of China and how much, venture capital come to really be able to affect the economic growth in three ways:the high-tech industry, the employment rate and the industry revenue, which coincides with the theory. In addition, empirical analysis between Venture Capital (VC investments) and Economic Growth (GDP) shows that venture capital do have a certain role in promoting but not very obviously economic growth.Comparing the development status of U.S. and China, China’s current problems with venture capital can get concluded:shortages of main investors, policies support, legal norms, professional talents, exit channels. Learning form the U.S. experience, this paper also gives policy proposals:to broaden the sources of venture capital; to give full role of government to play in formulating and implement a variety of incentive policies; to strengthen legal support; to improve regulatory standards and to optimize venture capital necessary social sources; to improve the GEM market for venture capital smooth channels in and out and integration.