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Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests

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  • Jalil, Abdul
  • Feridun, Mete
  • Ma, Ying

Abstract

This article re-examines the finance-growth nexus in China using principal components analysis and ARDL bounds testing approach to cointegration. The results suggest that principal components have an effective role in examining the links between growth and financial development and, that financial development fosters economic growth.

Suggested Citation

  • Jalil, Abdul & Feridun, Mete & Ma, Ying, 2010. "Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests," Greenwich Papers in Political Economy 7918, University of Greenwich, Greenwich Political Economy Research Centre.
    • Handle: RePEc:gpe:wpaper:7918
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