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Law, Finance, and Economic Growth in China: An Introduction

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  • Yao, Yang
  • Yueh, Linda
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    Abstract

    Summary China has experienced remarkable economic growth for three decades despite having a weak legal system and under-developed financial markets thought to be crucial for economic development. An assessment of the relationship among the legal and financial systems and economic growth reveals a complex set of institutional factors that have underpinned China's marketization, and which is not premised on the establishment of a legal or financial system before development takes off. China's experience holds lessons for other developing countries struggling with imperfect legal systems and nascent financial markets, which are not uncommon features of economies at an early stage of development.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 4 (April)
    Pages: 753-762

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:4:p:753-762

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    Web page: http://www.elsevier.com/locate/worlddev

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    Keywords: China law and finance economic growth and transition;

    References

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    Cited by:
    1. Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India: Evidence from capital markets," Journal of International Money and Finance, Elsevier, vol. 39(C), pages 111-137.
    2. Lu, Zhengfei & Zhu, Jigao & Zhang, Weining, 2012. "Bank discrimination, holding bank ownership, and economic consequences: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 341-354.

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