Research On Relationship Between Financial Intermediation Development And Economic Growth In Our Country

This paper aims at identifying the relationship between financial intermediation development andeconomic growth, especially focusing on the effects of banking development on China's economic growth.First, introduce the functions of the financial intermediation and its classification;Second, analyze themechanism which financial intermediaries development and economic growth interacts, by studying asimplified endogenesis growth model---AK model, discover that financial intermediation developmentenhance economic growth through three kinds of approaches: improve the save rate, the ratio of the savingstransform into investments and the marginal productivity of capital, then deal with the causality between thefinancial intermediation development and economic growth, refer to two kinds of viewpoints: supply-leadingand demand-following. Third, the writer does empirical research based on China: at first, a linear model withmultivariables including capital, labour and finance, focus on the role of financial intermediation. Then usingthe Granger Causality Test to detect the causality between the financial intermediation development andeconomic growth, the result is the kind of supply-leading;At last, checkout the approaches of the financialintermediation's enhancement to the economy growth, the result shows that there are cointegratedrelationships between economy growth and save rate, economy growth and capital transform rate, but thereisn't the same relationship between economy growth and turnout per capital, which indicates that financialintermediation development enhance economic growth mainly through increasing the save rate and capitaltransform rate, but turnout per capital doesn't increase correspondingly. Based on these researches, the writerbrings forward the suggestions about how to enhance the harmonious development of financial intermediationand economic growth, which including adjust and optimizing the structure of the financial intermediation,change the mode of the economy growth and develop the small and medium sized financial institutions.