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The impact of banks and non-bank financial institutions on local economic growth in China

Listed author(s):
  • Cheng, Xiaogiang
  • Degryse, Hans

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. Key Words: growth, financial development, Chinese provinces, banks JEL-codes: E44, G21

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File URL: https://helda.helsinki.fi/bof/bitstream/123456789/8082/1/157269.pdf
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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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Date of creation: 31 Dec 2007
Publication status: Published in Published in: Journal of Financial Services Research, Volume 37, Issue 2-3, June 2010, Pages 179-199.
Handle: RePEc:bof:bofitp:2007_022
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Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland

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Fax: + 358 9 183 2294
Web page: http://www.bofit.fi/en/
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