Financial Intermediary Development And Economic Growth Empirical Research

The important role of financial intermediary in help to economic growth has gatheredgreat attention. There are a large number of papers focusing on the relationshipbetween financial intermediary and economic growth, but the conclusions they dreware quite different. This thesis is based on the previous research results of others.Firstly the paper deeply expatiates on how the financial intermediary promotes theeconomic growth through the three channels. After that we choose the appropriateindices which are accurately revised and added according to the real circumstance ofour country to investigate the relationship between the financial intermediary and theeconomic growth from 1990 to 2005 in China. The aim of this paper is to provide thetheoretical foundation for building and optimizing our country's financial system, andfor bringing it into action in economic growth.The main conclusions of this thesis are as follows:Firstly, it reveals three channels through which financial intermediary affectseconomic growth based on AK growth model. These channels include: private savingrate, investment efficiency transferred from saving and marginal product of capital.Secondly, it shows that the efficiency index of our country's financial intermediary isnegatively related to the real economic growth.Thirdly, the scale index of our country's financial intermediary restrains the realeconomic growth.Fourthly, the structure index efficiently promotes the real economic growth.In the last part, on the basis of theoretical research and empirical research, we come tosome measures on how the financial intermediary can largely promote the economicgrowth in China.