Financial Reforms, Growth and Regional Disparity in China
In this paper, by employing the Generalized Method of Moment (GMM) techniques and Chinese provincial level data from 1991 to 2003, we empirically investigate the relationship between finance and growth in post-reform China. We find that financial development significantly promotes economic growth in coastal regions but not in inland regions; the weak finance-growth nexus in inland provinces has exacerbated China’s regional disparity.
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Paper provided by CERDI in its series Working Papers
Date of creation:
2007Date of revision:
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Related researchKeywords: Financial Development
; income disparity
; Chinese Economy
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