Reconciling the Chinese Financial Development with its Economic
AbstractFocused on the case of China’s financial development, the present discursive essay sets out to argue that if the Chinese financial system distorted the allocation of funds then economic growth could not be sustained and financial depth would remain deficient. The essay puts forward selected financial facts and policies, discusses their relevance in the particular context of China’s economic development goals and concludes that although the Chinese financial system is not developed according to the standards of industrialized countries, financial intermediation has nevertheless been efficient in terms of promoting savings and credit to the extent that might have been good enough to facilitate economic growth. Furthermore, in order to reconcile China’s financial efficiency-growth apparent paradox, the essay supports the view that analyzing China’s financial system using market-based standards may not be valid.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0511024.
Length: 13 pages
Date of creation: 22 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 13. Essay on the Chinese Financial Development
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China; financial development; growth-finance nexus;
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-CNA-2005-12-01 (China)
- NEP-DEV-2005-12-01 (Development)
- NEP-FMK-2005-12-01 (Financial Markets)
- NEP-SEA-2005-12-01 (South East Asia)
- NEP-TRA-2005-12-01 (Transition Economics)
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Central Bank of Chile.
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William Davidson Institute Working Papers Series
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