The experiences of economic growth from countries over the world show that there is certain relationship between economic growth and development of financial intermediaries. In China, scholars also have proved there is such relation between them. The paper aims to analyze relationship between small and medium sized financial intermediaries and private economic growth of Zhejiang province on the condition of the reality.The paper first gives a brief introduction of the current research and analyzes the theoretical and practical thesis. On such basis, the paper further analyzes the mutual function between private economic growth and financial intermediation development, which supports the further practical analysis.The paper aims to solve the problem that if there is mutual relationship between private economic growth and small and medium-sized intermediation development. If there is such relationship, the paper will further analyze the channels between them, in order to give reasonable advice for the future development in Zhejiang Province. Therefore, the paper picks up related data and proves there is mutual relationship between them by using models of Granger Causality and Cointegration. Furthermore, the paper also tests the channels between such relations and to see which one is effective. Finally, the paper gives reasonable advice based on the results. |