The Role Of Financial Intermediation And Economic Growth Relationship Study

The source of economic growth, economic growth and the internal mechanism ways to achieve them has always been on the core issues. The relations between capital accumulation, technological progress and growth of the workforce has already aroused the concern of economic circles, and produced a large number of research results. Along with the development in the last few decades, the role of financial intermediation and the relationship between economic growth had concerned a growing number of economist' interest, which has great significance and a reference value of the use of financial intermediation theory and application in the development of China's financial policy options.In this paper, the role of financial intermediaries in China and the relationship between economic growth and financial intermediaries have been studied theoretically and empirically. The full text is divided into six parts. Part I: Introduction. The introduction of the theory and practical significance on research the role of financial intermediation and the relationship between economic growth and financial intermediation, and the definition of the meaning of financial intermediaries, including the dynamic and static meaning. A qualitative analysis and quantitative analysis have been used. On the one hand, the relations between them have been analyzed in qualitative ways; On the other hand the relations between them have been analyzed in quantitative ways.Part II: Review of role of financial intermediaries and economic growth relations. We mainly introduce the domestic and foreign researches on the economic growth and the relationship between them. From this we draw three conclusions: the financing role of financial intermediation promoted a country's economic growth, reduced the cost in searching for market and reduced the cost in economic growth, which made economic growth be more efficient. In the process of promotion of economic growth, the development of financial intermediation is the essential factors.Part III: The mechanism of how financial intermediation promotes economic growth. Mainly five areas of financial intermediation were introduced in the microscopic features, which are: risk avoidance and dispersion, resource allocation, monitoring manager and promoting corporate management, mobilizing savings, and promoting exchange, etc. the three channels that financial intermediation impact on economic growth, which are: by increasing savings rate, increasing savings-investment transference rates, by raising the marginal productivity of capital to promote economic growth. The three theories of the relationship between financial intermediation and economic growth , which are: supply-oriented theory, the needs follow theory and the complementary theory. And concluded that: there exist a cycle of development between economic growth and the development of financial intermediaries, the growth of economic can contribute to the development of financial intermediaries ,and at the same time, the establishment and development of financial intermediaries can help accelerating economic growth. Part IV: A containing financial institutions. a theoretical model have been established, which include the vendor, household and financial institutions, and analysis the role of the financial intermediaries and the relationship between economic growth and financial intermediaries, concluded that: Financial intermediation (in this section that is financial institutions)take the role of financing, and by adopting the regulation of interest rates, financial institutions absorb savings from household, which become the financial institutions' assets that can be used , and, lending to manufacturers in the form of loans to increase the actual useful capital stock, thereby promote economic growth increasing by increasing the stock of capital.Part V: China and the role of An Empirical Analysis of economic growth and financial intermediation in china, by introducing a series of related indicators, we simply analysis China's financial intermediation contribution to the growth of the economy, and pointed out some problems in China's current economic growth. Such as: financial reform has remained relatively stagnant economic development, market-oriented interest rates is not significant on the role of economic growth, financial intermediaries have some negative impact on the development of the economic growth , the effecting of development of the capital market is less affected to the economic growth.Part VI: conclusions and recommendations. For the existing problems of the current economic growth in the fifth part, we put forward some concrete proposals, which are the Development of non-state-owned economy financial services, for the gradual market-oriented interest rate mode, and further improvement of our capital markets and increasing of education and technical development of innovative financial investment.The innovation lies in this paper is that Previous studies largely based on the macroeconomic analysis, and focus on macro analysis .in this paper we established a micro-economic basis model, making the analysis of the financial intermediaries and the macro-economic growth established on the basis of microscopic analysis. The inadequacy of this study is the depth of it is not enough; there are some issues that need further study.