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Law, Finance, and Economic Growth in China: An Introduction

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  • Yao, Yang
  • Yueh, Linda

Abstract

Summary China has experienced remarkable economic growth for three decades despite having a weak legal system and under-developed financial markets thought to be crucial for economic development. An assessment of the relationship among the legal and financial systems and economic growth reveals a complex set of institutional factors that have underpinned China's marketization, and which is not premised on the establishment of a legal or financial system before development takes off. China's experience holds lessons for other developing countries struggling with imperfect legal systems and nascent financial markets, which are not uncommon features of economies at an early stage of development.

Suggested Citation

  • Yao, Yang & Yueh, Linda, 2009. "Law, Finance, and Economic Growth in China: An Introduction," World Development, Elsevier, vol. 37(4), pages 753-762, April.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:4:p:753-762
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    Cited by:

    1. Mahmoud Arayssi & Ali Fakih, 2015. "Institutions and development in MENA region: evidence from the manufacturing sector," International Journal of Social Economics, Emerald Group Publishing, vol. 42(8), pages 717-732, August.
    2. Wilson, Ross, 2016. "Does Governance Cause Growth? Evidence from China," World Development, Elsevier, vol. 79(C), pages 138-151.
    3. Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India: Evidence from capital markets," Journal of International Money and Finance, Elsevier, vol. 39(C), pages 111-137.
    4. Boya Wang, 2016. "Ownership, Institutions & Firm Value: Cross-Provincial Evidence from China," Working Papers wp484, Centre for Business Research, University of Cambridge.
    5. Lu, Zhengfei & Zhu, Jigao & Zhang, Weining, 2012. "Bank discrimination, holding bank ownership, and economic consequences: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 341-354.
    6. Kusnadi, Yuanto & Yang, Zhifeng & Zhou, Yuxiao, 2015. "Institutional development, state ownership, and corporate cash holdings: Evidence from China," Journal of Business Research, Elsevier, vol. 68(2), pages 351-359.
    7. Thomas Barnebeck Andersen & Sam Jones & Finn Tarp, 2012. "The Finance–Growth Thesis: A Sceptical Assessment-super- †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(suppl_1), pages -88, January.
    8. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705.
    9. Wilson, Ross, 2015. "Does Governance Cause Growth? Evidence from China," Working Papers 2015:14, Lund University, Department of Economics.
    10. Gennady Bilych, 2013. "Democratic Changes and Economic Growth," Business and Economic Research, Macrothink Institute, vol. 3(1), pages 461-486, June.
    11. Jin Guo, 2015. "Causal relationship between stock returns and real economic growth in the pre- and post-crisis period: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 47(1), pages 12-31, January.

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