Financial Intermediary Development And Economic Growth

Economic growth has become into the focus researched by many scholars, how to improve living standard, dispel the poverty and so on that are involved in. In these years many scholars view financial development as playing a key role in the process of economic growth. They advocate a'liberalized'financial system which they say is able to mobilize an increased volume of financial saving and allocate capital and contribute to economic growth. Especially Asian financial crisis in 1997 accelerated the process. Financial development includes two aspects: one is financial intermediary development, another is capital market development. Considering the short time development of capital market and weak effect on economic growth that has researched by some scholars, we only pay our attentions to the financial intermediary development. Empirical research is the emphases of the paper. The primary method is causality test. Due to unstable result of Nonstationary variable, there makes some improves on the method, for example: Regarding the variable of integrated of order one as new variable and making Granger causality analysis. In the same time we analyze long-run effect on causality results. The main method used is multivariate cointegration analysis. Johansen test shows there are three cointegrating vectors in our VAR of five variables. Then we test dynamic of the error correction coefficients. These have some innovator on methodology. This paper is divided into four chapters, whose main contents and structure are as follows:Chapter1-research backgroundNowadays literatures of relationship between financial development and economic growth are comprehensive; by contrast the literatures of financial intermediary development to some extent are weak. Considering...