Economics, finance and development in China

Abstract

Purpose -The purpose of this paper is to construct a financial development index for China and to analyze the relationship between the financial sector development index and economic growth. Design/methodology/approach -This study uses Johansen-Juselius cointegration approach to determine long run relationship between variables. To determine the strength of causal relationship variance decomposition is used. The stability of coefficient is evaluated through rolling window regression method. Findings -The results of Johansen-Juselius cointegration approach confirm long run relationship between financial development index and economic growth. Normalized cointegrating vector indicates that financial development index, real interest rate, capital and labor force positively determine economic growth in China. The yearly coefficient is provided by the rolling regression and indicates that financial development index negatively link to economic

Does Financial Development Hamper Economic Growth: Empirical Evidence From Bangladesh

“…Further a 1% increase in FDI impedes growth in real GDP by 0.254% in Bangladesh. This result is consistent with the earlier findings of Hye (2011) for India but not with those found by Ang (2007); Khan and Qayyum (2007); Kar et al (2008), and Hye and Dolgopolova (2011) for Malaysia, Pakistan, Turkey, and China respectively, on average ceteris paribus. These authors found that a 1% increase in FDI increases economic growth by 0.096, 1.029, 0.015 and 0.25%, respectively.…”

“…The results show that a 1 percent increase in RIR causes expected real economic growth to decline by 0.051%, ceteris paribus. This result is consistent with the findings of Hye (2011) for India but not with those found by Khan and Qayyum (2007) for Pakistan, and Hye and Dolgopolova (2011) for China. Hye's (2011) estimates suggest that a 1% increase in RIR lowers economic growth by 0.04% in India.…”

The Dynamics of Cointegration Between Economic Growth and Financial Development in Emerging Asian Economy: Evidence from India

“…Jeanneney et al (2006), in China, employed the generalized method of moments (GMM) system of innovation and observed positive influence of development on growth in country’s productivity in the financial sector . Hye and Dolgopolava (2011), in their research paper, employing Johansen Juselius Co-Integration approach, also confirmed the presence of cointegration between financial development index and growth in China’s economy. In Cameroon, with ARDL Bounds test, Puatwoe and Piabuo (2017) found the existence of statistically significant positive effect of all financial development indicators on economic growth.…”

Analisis Pertumbuhan Ekonomi Dan Indeks Pembangunan Manusia Di Kabupaten/Kota Provinsi Bali (Metode Kointegrasi)

“…Untuk mengetahui pola interaksi antara seri data yang dapat dilihat, tes kausalitas Granger dilakukan selanjutnya. Metode yang dapat digunakan untuk melakukan uji kointegrasi adalah pengembangan dari uji kointegrasi di data time series, seperti metode yang menggunakan dasar test kointegrasi Engle-Granger dan Combined individual test Fisher/ Johansen (Misra & Trivedi, 2002;Muhammad Adnan Hye & Dolgopolova, 2011).…”