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A Contribution to the Empirics of Finance-growth Nexus in China: A Complex System Perspective

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  • Jean-Claude Maswana

Abstract

The paper empirically examines the causal interactions between Chinese financial development and economic growth using the perspective of complex systems as a metaphor in an attempt to provide a better understanding of the co-evolution of China's real and financial sectors. Using Hsiao's version of the Granger causality tests, the empirical results support a complex set of bidirectional causality between the financial development proxies and economic growth variables. Despite numerous alleged financial intermediation's inefficiencies, bidirectional causality would suggest a coherent and effective finance-growth ecosystem.

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  • Jean-Claude Maswana, 2009. "A Contribution to the Empirics of Finance-growth Nexus in China: A Complex System Perspective," Global Economic Review, Taylor & Francis Journals, vol. 38(1), pages 29-47.
    • Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:29-47
    DOI: 10.1080/12265080802692662
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    References listed on IDEAS

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    1. Mathias Binswanger, 1999. "Stock Markets, Speculative Bubbles and Economic Growth," Books, Edward Elgar Publishing, number 1749.
    2. Mr. Jahangir Aziz & Mr. Christoph Duenwald, 2002. "Growth-Financial Intermediation Nexus in China," IMF Working Papers 2002/194, International Monetary Fund.
    3. Jeannine Bailliu, 2000. "Private Capital Flows, Financial Development, and Economic Growth in Developing Countries," Staff Working Papers 00-16, Bank of Canada.
    4. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    5. Gelb, Alan H., 1989. "Financial policies, growth, and efficiency," Policy Research Working Paper Series 202, The World Bank.
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    Cited by:

    1. Ebru TOPCU Author- Workplace-Name: Nevsehir Haci Bektas Veli University, Department of Economics, Turkey, 2016. "Reexamining Finance-Growth Nexus: A New Literature Survey," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-7, august.

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