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Financial Development, Market Deregulation and Growth: Evidence from China

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  • Zhicheng Liang
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    Abstract

    In this paper, the relationship between finance and growth is analysed in the context of an endogenous growth model with government regulation and intervention. Our theoretical model suggests that financial intermediaries can affect the process of economic growth in several ways. Using the recent Generalized Method of Moments (GMM) techniques, we test our model in a panel data set covering 29 Chinese provinces over the period of 1990-2001. Empirical results show that financial development and government deregulation in the financial sector significantly promote China's economic growth.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317924
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 3 (2005)
    Issue (Month): 3 ()
    Pages: 247-262

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    Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:247-262

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    Related research

    Keywords: Financial development; economic growth; financial intermediaries; Chinese economy; JEL Classifications: O16; O40; R11;

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    References

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    Cited by:
    1. Hasan, Iftekhar & Wachtel , Paul & Zhou, Mingming, 2006. "Institutional development, financial deepening and economic growth: Evidence from China," BOFIT Discussion Papers 12/2006, Bank of Finland, Institute for Economies in Transition.
    2. Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India : evidence from capital markets," Policy Research Working Paper Series 6401, The World Bank.
    3. Iftekhar Hasan & Haizhi Wang & Mingming Zhou, 2009. "Do better institutions improve bank efficiency? Evidence from a transitional economy," Managerial Finance, Emerald Group Publishing, vol. 35(2), pages 107-127.
    4. Andersson, Fredrik N. G. & Burzynska, Katarzyna & Opper, Sonja, 2013. "Lending for Growth? An Analysis of State-Owned Banks in China," Working Papers 2013:19, Lund University, Department of Economics.

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