The finance-growth nexus in China: a meta-analysis

The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis

“…Arestis et al (2015) find an overall positive effect size between FD and growth, whereas Valickova et al (2015) observe that the average effect size of FD and growth is significantly greater for Latin American and European countries. A similar finding is observed in a recent meta-study by Guo and He (2020), who report that FD significantly enhances economic growth in the Chinese case. Similarly, Bittencourt et al (2012) suggest that FD plays a significant role in triggering economic activities, enhancing innovation, and augmenting economic growth in Latin American countries.…”

“…Governments and other organizations working in those regions-such as the African Development Bank, the European Union, or the World Bank-need to focus on educating investors and the public concerning the importance of financial markets, as well as providing guidance regarding their investment safety concerns, such as the volatility of stock market prices. Alternatively, regulation agencies in the country, such as the Securities and Exchange Commission, should be vigilant and monitor stock market activities independently as a means of improving markets and fostering confidence in willing investors (Guo & He, 2020;Huang & Wang, 2017). Governments also need to focus on the growth of financial infrastructure (i.e.…”

Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies

“…Pan and Mishr [ 23 ] found evidence of a growth-led stock market development in China. However, a meta-analysis performed by Guo and He [ 71 ] divulge that the banking sector is a key driver of economic growth than the stock market in China. Meanwhile, Tang [ 72 ] documents no evidence of a finance-led growth in China but contingent on industrialization.…”

Assessing the asymmetric effects of capital and money markets on economic growth in China

“…But it is important to understand the magnitude of the effects of capital and money market indicators on economic growth, which is truly essential to help policymakers construct specific policies in light of the macroeconomic variables ( Chen et al., 2020 ). Though there are many empirical works about the nexus between economic growth and financial intermediaries in the U.S., western regions ( Jula and Jula, 2013 ; Burhop, 2006 ; Levine et al., 2000 ; Bass, 2018 ; Purewal and Haini, 2021 ; Swamy and Dharani, 2020 ; Coccorese and Silipo, 2015 ; Shobande and Ogbeifun, 2021 ), and some recent studies for China that have postulated impenetrable results assuming symmetrical nexus amid finance and growth ( Burzynska, 2009 ; Yaoling, 2009 ; Wang et al., 2010 ; Ouyang and Li, 2018 ; Wu et al., 2020 ; Guo and He, 2020 ), yet studies are scarce for China. Nevertheless, considering the existing literature on the symmetrical nexus between finance and growth and the confounding results presented by recent studies, there is still an obvious gap in the literature, which is filled by the present study.…”