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

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  • Cheng, Xiaogiang
  • Degryse, Hans

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

Suggested Citation

  • Cheng, Xiaogiang & Degryse, Hans, 2007. "The impact of banks and non-bank financial institutions on local economic growth in China," BOFIT Discussion Papers 22/2007, Bank of Finland, Institute for Economies in Transition.
  • Handle: RePEc:bof:bofitp:2007_022
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    More about this item

    Keywords

    growth; financial development; chinese provinces; banks jel-codes: e44; g21;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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