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The Impact of Bank and Non-Bank Financial Institutions on Local Economic Growth in China

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  • Cheng, X.
  • Degryse, H.A.

    (Tilburg University, Center for Economic Research)

Abstract

This paper provides evidence on the relationship between finance and growth in a fast growing country, such as China.Employing data of 27 Chinese provinces over the period 1995-2003, we study whether the financial development of two different types of institutions - banks and non-bank financial institutions - have a (significantly different) impact on local economic growth.Our findings indicate that only banking development shows a statistically significant and economically relevant impact on local economic growth.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-82.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200682

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Keywords: growth; financial development; Chinese provinces; banks;

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