The Financial Deepening-Productivity Nexus in China: 1987-2001
AbstractThe financial intermediation-growth nexus is a widely studied topic in the literature of development economics. Deepening financial intermediation may promote economic growth by mobilizing more investments, and lifting returns to financial resources, which raises productivity. Relying on provincial panel data from China, this paper attempts to examine if regional productivity growth is accounted for by the deepening process of financial development. Towards this end, an appropriate measurement of financial depth is constructed and then included as a determinant of productivity growth. It finds that a significant and positive nexus exists between financial deepening and productivity growth. Given the divergent pattern of financial deepening between coastal and inland provinces, this finding also helps explain the rising regional disparity in China.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.
Volume (Year): 5 (2007)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RCEA20
Other versions of this item:
- Zhang, Jun & Wan, Guanghua & Jin, Yu, 2007. "The Financial Deepening-Productivity Nexus in China: 1987-2001," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Zhang, Jun, 2008. "China?s Economic Growth: Trajectories and Evolving Institutions," Working Paper Series RP2008/33, World Institute for Development Economic Research (UNU-WIDER).
- Sergio Schmukler & Tatiana Didier, 2013.
"The Financing and Growth of Firms in China and India: Evidence from Capital Markets,"
2013 Meeting Papers
98, Society for Economic Dynamics.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.