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

  • Xiaoqiang Cheng

    ()

  • Hans Degryse

    ()

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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File URL: http://hdl.handle.net/10.1007/s10693-009-0077-4
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Article provided by Springer in its journal Journal of Financial Services Research.

Volume (Year): 37 (2010)
Issue (Month): 2 (June)
Pages: 179-199

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Handle: RePEc:kap:jfsres:v:37:y:2010:i:2:p:179-199
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102934

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