Study on the relationship of financial intermediary and economic growth based on empirical analysis of Hebei

Chinese bank plays an important role in the financial system. It demonstrates the causality between financial intermediary represented by banks and economic growth in Hebei by rigorous econometric analysis method. It also gives some policy suggestion based on the analysis of the data from 1978 to 2007 with ADF unit root test and Co-integration test and Granger causality test. The result shows that financial intermediary and economic growth is still in the mixed phase of Demand-following model and Supply-leading model and there is a long term equilibrium causality relationship between financial intermediary and economic growth that larger deposit scale, faster economic growth; faster economic growth, higher financial intermediary efficiency.