The Empirical Research Of Financial Intermediation Development And Economic Growth In Zhejiang Province

Finance is the core of the modern economy. Modern economy is the market economy and the market economy in essence is a kind of advanced currency credit economy or financial economy. Financial intermediaries are an important part of the financial system, it is healthy or not directly linked to whether the economic system can run well. A large number of documents at home and abroad have indicated that financial intermediation development can accelerate economic growth. Since the development of financial intermediation can play a positive role to the economic growth, then how to make the financial intermediary take effect on economic growth has become a meaningful question.Based on the actual situation in Zhejiang Province, this thesis aims to study the relationship between on financial intermediation development and economic growth. This thesis first reviews financial intermediation theory by time order, secondly outlines documents both domestic and abroad on this area. The third chapter is mainly on analyzing the international mechanism of financial intermediation development and economic growth, then, according to AK model, it draws that financial intermediation influences economic growth through savings rate, savings conversion efficiency, capital allocation efficiency. Then the next step is the positive part. First, this article analyzes current situation of the economic growth and the financial intermediation. Then, by using a mathematical model to measure the financial intermediary index and economic growth index with Co-integration and causality, it draws that the financial intermediation scale index and efficiency indicators have a positive correlativity to the economic growth index, but the organization index of financial intermediation and has a negative correlativity to the economic growth index. At the same time, the size of financial intermediation is the cause of economic growth, financial intermediation efficiency and economic growth have a bi-directional causal relationship between each other, and economic growth is the reason why the financial intermediary organized. Next, by using the co-integrating proof-testing methods, it demonstrates the three effects channel that the financial intermediaries affect the economic growth, in order to draw that there is a co-integrating relationship among the economic growth index and savings rate, capital formation and capital allocation efficiency. It illuminates that the development of financial intermediation in Zhejiang Province promotes economic growth mainly through the savings rate, capital formation, and capital allocating efficiency. On the basis of the positive research, the last capture puts forward some corresponding suggestions at the Government level. First is macro-control, 1. Improve financial control and maintain reasonable growth of credit 2. Strengthen credit system construction, optimize financial ecology. 3. Develop the open market and regulate private finance. Second is the financial intermediation. 1. Push forward the reform of State-owned commercial banks. 2. Verify the financial services. 3. Actively develop medium-sized financial intermediaries.