The relationship between finance and growth in China

Chen, K.C.; Wu, Lifan; Wen, Jian Guo

doi:10.1016/j.gfj.2013.03.006

Cited by 32 publications

(18 citation statements)

References 24 publications

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“…The actual path to financial development in China itself appears to have undergone many structural changes since the onset of economic reforms in December, 1978 (Chen et al 2013). During that time, China's financial system has been dominated by a large banking system.…”

Section: An Overview Of China's Financial Systemmentioning

confidence: 99%

The drivers of economic growth in China and India: globalization or financial development?

Kandil

Shahbaz

Mahalik

et al. 2017

IJDI

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Using annual data from 1970-2013 for China and India, this study examines the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. In the long-run, co-integration test results indicate that financial development increases economic growth in China and India. The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

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Section: An Overview Of China's Financial Systemmentioning

confidence: 99%

The drivers of economic growth in China and India: globalization or financial development?

Kandil

Shahbaz

Mahalik

et al. 2017

IJDI

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“…as n-dimensional over annual periods. Empirical results in most of the papers provide that there is a statistically significant relationship between growth and financial development indicators (Akinci Yuce, Akinci, and Yilmaz, 2014;Beck et al, 2008;Beck, Georgiadis, and Straub, 2014;Beck et al, 2000;Benhabib and Spiegel, 2000;Calderón and Liu, 2003;Caporale et al, 2015;Chen and Quang, 2014;Chen, Wu, and Wen, 2013;Chow and Fung, 2013;Christopoulos and Tsionas, 2004;Demetriades and Hook Law, 2006;Ductor and Grechyna, 2015;Dwyfor Evans, Green, and Murinde, 2002;Fisman and Love, 2004;Habibullah and Eng, 2006;Hassan, Sanchez, and Yu, 2011;Ketteni et al, 2007;Lartey and Farka, 2011;Lee and Chang, 2009;Levine et al, 2000;Li, Zhang, and Ma, 2015;Wachtel, 2000, 2002;Saci, Giorgioni, and Holden, 2009;Stengos and Liang, 2005;Zhang, Wang, and Wang, 2012). However, in some of the papers, there is no clear consensus on the relationship between financial development and economic growth for all measurements of financial development (Bangake and Eggoh, 2011;Beck and Levine, 2002;Rioja and Valev, 2004;Samargandi, Fidrmuc, and Ghosh, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

Uyar¹,

Uyar²

2018

Prague Economic Papers

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This paper seeks to investigate the effect of financial development on growth in OECD countries during 1999-2014. The aim of the analysis is to study the dependence of growth on given financial development indicators along quantiles of the conditional growth distribution, taking into account the effect played by each country over time. For the purpose of the empirical analysis, it performed the instrumental variable quantile regression panel data (IV-QRPD) model suggested by Powell (2016). The findings of IV-QRPD model indicated that the effect of finance on growth is changing along quantiles of the conditional growth distribution. That is to say, we provide some evidence that high-growth OECD countries react to the changes in financial development less than low-growth countries.

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“…() for Italy, and Liang () and Chen et al . () for China examined financial development at the local level, they, did not examine contributions of specific bank groups to economic growth. Our study contributes in this respect as well.…”

Section: Introductionmentioning

confidence: 99%

Do Public Sector Banks Promote Regional Growth? Evidence From an Emerging Economy

Arora

Wondemu

2018

Rev Urban & Reg Develop

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DO PUBLIC SECTOR BANKS PROMOTE REGIONAL GROWTH? EVIDENCE FROM AN EMERGING ECONOMY ABSTRACTA large literature exists on the relationship between financial development and economic growth. The role of government and public banks in building this relationship has however, remained contentious. In this study in a sub-national level of analysis in the context of large emerging economy, India we raise the question what is the relative impact of public banks in economic growth in the lagging regions vis-à-vis leading regions? Do they matter more than the private and foreign banks? To address these problems, we apply dynamic GMM panel estimator on an unbalanced panel dataset drawn from 25 Indian states covering period 1996/97 to 2008/09. Although our study is in the Indian context, it is relevant for developing countries for mainly two reasons: government ownership of banks has been widely prevalent in developing countries and in many large countries in a federation set-up inter-state differences may exist with multiple ownership of the financial sector.

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The relationship between finance and growth in China

Cited by 32 publications

References 24 publications

The drivers of economic growth in China and India: globalization or financial development?

The drivers of economic growth in China and India: globalization or financial development?

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

Do Public Sector Banks Promote Regional Growth? Evidence From an Emerging Economy

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