The Impact of Banks and Non-Bank Financial Institutions on Local Economic Growth in China
49 Pages Posted: 4 Feb 2008
Date Written: December 30, 2007
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
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