Promoting The Growth Of Medium And Small-sized Enterprises Through The Development Of Medium And Small-sized Financial Intermediation

Based on the existing research, the thesis first conducts a thorough analysis on the applicability of relationship lending to SMEs financing and the comparative advantage of small and medium-sized financial intermediation in relationship lending to SMEs, then concludes that developing small and medium-sized financial intermediation is an effective measure to deal with the difficulty met by SMEs in financing.The thesis, taking Guangdong and Zhejiang Province as two examples, where SMEs enjoy the greatest prosperity nationwide, studies the current status of the development of small and medium-sized financial intermediation and SMEs financing in the two provinces and conducts an empirical research on the credit supporting role of small and medium-sized financial intermediation to SMEs. The research shows that the development of small and medium-sized financial intermediation is the Granger causality of the increase of gross industrial output value of SMEs in Zhejiang province while the development of small and medium-sized financial intermediation is not the Granger causality of the growth of gross industrial output value of SMEs in Guangdong Province.The thesis then explains the weaker credit supporting role of small and medium-sized financial intermediation in Guangdong Province from the perspectives of economic development node, the role of local government and social capital. Combining econometric model and case analysis, the thesis concludes that the system and cultural tradition of Zhejiang Province are nore favorable to the development of small and medium-sized financial intermediation and to he development of relationship lending compared with those of Guangdong Province.Based on the experience of Zhejiang Province, the thesis finally proposes that the creation and improvement of system as well as the development of small and medium financial nstitutions by enriching social capital should be the key to solve the problem met by SMEs in inancing.