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

49 Pages Posted: 4 Feb 2008

See all articles by Hans Degryse

Hans Degryse

KU Leuven, Department Accounting, Finance and Insurance; Centre for Economic Policy Research (CEPR)

Xiaoqiang Cheng

Hong Kong Monetary Authority

Date Written: December 30, 2007

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.

Keywords: growth, financial development, Chinese provinces, banks

JEL Classification: E44, G21

Suggested Citation

Degryse, Hans and Cheng, Xiaoqiang, The Impact of Banks and Non-Bank Financial Institutions on Local Economic Growth in China (December 30, 2007). BOFIT Discussion Paper No. 22/2007. Available at SSRN: https://ssrn.com/abstract=1090155 or http://dx.doi.org/10.2139/ssrn.1090155

Hans Degryse

KU Leuven, Department Accounting, Finance and Insurance ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Xiaoqiang Cheng (Contact Author)

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
Hong Kong

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