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

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  • Cheng, Xiaoqiang

    ()
    (BOFIT)

  • Degryse, Hans

    (BOFIT)

Abstract

This paper provides evidence on the relationship between finance and high growth in China. Employing data for 27 Chinese provinces over the period 1995–2003, we assess the impact of banks and non-bank financial institutions on local economic growth. We argue that banks have had a larger impact than non-banks on local economic growth as they benefited earlier and more profoundly from China’s financial reforms than their non-bank counterparts.

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Bibliographic Info

Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 22/2007.

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Length: 49 pages
Date of creation: 04 Feb 2007
Date of revision:
Handle: RePEc:hhs:bofitp:2007_022

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

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