Finance and Growth: A Critical Survey*

Trew, Alex

doi:10.1111/j.1475-4932.2006.00361.x

Cited by 47 publications

(27 citation statements)

References 42 publications

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“…Therefore, sometimes it is not beneficial to the poor. Aghion and Bolton (1997) [42], Lloyd-Ellis and Bernhardt (2000) [43], Ueda (2003, 2006) [44,45], Chakraborty and Ray (2007) [46] all verified this view. Galor and Zeira (1993) [47], Ravallion (1997Ravallion ( , 2001 [48] thought that when the effect of distributive inequality is sufficient to offset the poverty alleviation effect of economic growth, financial development will be adverse to poverty alleviation.…”

Section: Literature Review and Research Hypothesismentioning

confidence: 84%

The Nexus between Credit Channels and Farm Household Vulnerability to Poverty: Evidence from Rural China

Sun

Xiao-hong

2020

Sustainability

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It is well known that finance is at the core of economic activities, and rural finance is an important force for agricultural development, rural economic growth, and farmer income growth, but how rural credit affects vulnerability to poverty of farm households is not yet known. The study on the nexus between the credit channels and vulnerability to poverty can not only realize targeted poverty alleviation but also promote sustainable rural development. This study measures vulnerability to poverty of Chinese farm households by three-stage feasible generalized least squares (FGLS) and tests for the impact of two credit channels on farm household's vulnerability to poverty based on China Household Finance Survey data. We mainly found that the proportion of structural poverty in western areas is comparatively large, and risky poverty of farm households in eastern areas is relatively serious. The high education cost may be an important factor in farm household poverty; the cost-effectiveness of education is higher than that of earnings. Farm household vulnerability to poverty with folk loans is 0.2% higher than that of farm households without private credit; however, this is not significant. Farm household vulnerability to poverty with bank credit is 0.4% lower than households without bank credit, which is significant. For farm households who have a higher level of vulnerability to poverty, the effect of bank credit on reducing vulnerability to poverty is greater. Moreover, we replaced the vulnerability-to-poverty variable with a more rigid indicator to test the relationship between the credit channels and vulnerability to poverty and got the same results as before.

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Section: Literature Review and Research Hypothesismentioning

confidence: 84%

The Nexus between Credit Channels and Farm Household Vulnerability to Poverty: Evidence from Rural China

Sun

Xiao-hong

2020

Sustainability

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“…Development economics studies two types of relationships: first, the link between banking sector development and economic growth (Christopoulos & Tsionas, 2004;Majid & Mahrizal, 2007;Menyah et al, 2014;Moshirian & Wu, 2012;Tang, 2005); and second, the link between stock market development and economic growth (Choong, Yusop, Law, & Venus, 2003;Khan, 2004;Levine, 1991;Singh, 1997). In a broad-spectrum, both banking sector development and stock market development are main forces that can bring about high economic growth in a country (Bilson, Brailsford, & Hooper, 2001;Castaneda, 2006;Fink, Haiss, & Vuksic, 2006;Garcia & Liu, 1999;Gjerde & Saettem, 1999;Kwon & Shin, 1999;Nieuwerburgh, Buelens, & Cuyvers, 2006;Pagano, 1993;Schumpeter, 1911;Shan, Morris, & Sun, 2001;Shaw, 1973;Trew, 2006). It has been argued in a subset of the finance-growth literature that both banking sector development and stock market development can cause each other (Allen, Gu, & Kowalewski, 2012;Cheng, 2012;Gimet & Lagoarde-Segot, 2011).…”

Section: Introductionmentioning

confidence: 99%

Causal nexus between economic growth, banking sector development, stock market development, and other macroeconomic variables: The case of ASEAN countries

et al. 2014

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This paper examines the relationship between banking sector development, stock market development, economic growth, and four other macroeconomic variables in ASEAN countries for the period 1961–2012. Using principal component analysis for the construction of the development indices and a panel vector auto‐regressive model for testing the Granger causalities, this study finds the presence of both unidirectional and bidirectional causality links between these variables. The study contributes to understanding the importance of the interrelationship between the variables and combines the different strands of the literature. It also contributes to the literature by focusing on a group of countries that have not been studied before. One particular policy recommendation is to make the banking sector more accessible for those country's inhabitants that do not have bank accounts. Another policy recommendation is to nurture stock market development, which will facilitate the increased raising of capital for investment purposes to enhance economic growth.

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“…A large number of studies identified possible mechanisms through which financial liberalization promotes growth, including facilitating financial development, improving allocative efficiency, inducing technological progress and enhancing financial stability (Shaw, 1973;Levine, Loayza and Beck, 2000). Many empirical analyses also confirmed this positive correlation (Levine, 2005;Trew, 2006). Some other studies, however, cast doubts on this relationship.…”

Section: Introductionmentioning

confidence: 99%

Does Financial Repression Inhibit or Facilitate Economic Growth? A Case Study of Chinese Reform Experience*

Huang¹,

Wang²

2011

Oxf Bull Econ Stat

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This article examines the impact of financial repression on economic growth during China's reform period. The aggregate financial repression index suggests that China's financial liberalization has been steady but gradual. Empirical estimation confirms that, on average, repressive policies helped economic growth, thanks probably to the prudent liberalization approach. But the impact turned from positive in the 1980s and the 1990s to negative in the 2000s, suggesting rising efficiency losses in recent years. Specifically, we find that lending to the state sector, interest rate regulation and capital account control were the main factors constraining China's economic growth in recent years.

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Finance and Growth: A Critical Survey*

Cited by 47 publications

References 42 publications

The Nexus between Credit Channels and Farm Household Vulnerability to Poverty: Evidence from Rural China

The Nexus between Credit Channels and Farm Household Vulnerability to Poverty: Evidence from Rural China

Causal nexus between economic growth, banking sector development, stock market development, and other macroeconomic variables: The case of ASEAN countries

Does Financial Repression Inhibit or Facilitate Economic Growth? A Case Study of Chinese Reform Experience*

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