Financial Development and Economic Growth: An Empirical Study on China

The South China Journal of Economics in September 2008 (In Chinese)

17 Pages Posted: 10 May 2013

See all articles by Qinxian Bai

Qinxian Bai

Liaoning University

Zhiwen Zhang

Sun Yat-sen University-School of International Relations

Date Written: May 9, 2013

Abstract

本文采用GMM 估计量,把影响中国经济增长的重要变量(投资、出口、进口、人力资本、制度质量和通货膨胀)作为条件信息集,对金融发展(债券市场、股票市场和银行发展)与中国经济增长的关系及其作用机制进行了实证研究。文章发现:债券市场规模发展、银行对私人信贷扩张和股票市场流动性提高显著地促进经济增长,而股票市场规模发展和波动性扩大对经济增长具有显著的负面影响。金融发展对中国经济增长的作用机制主要是通过促进投资规模扩张,进而驱动经济增长。

From the bond market perspective, this paper employs the GMM estimator to investigate the empirical relationship between financial development (consisting of bank, bond and stock markets’ development) and economic growth in China and the channels through which financial development affects economic growth, depending on the conditioning information set of important economic growth determinants such as investment, export, import, human capital, institutional quality and inflation as well. It is found that the bond market size development, the banking development and the improvement in stock market liquidity contribute significantly to, but the stock market size and volatility developments have negative effect on economic growth.

Note: Downloadable document is in Chinese.

Keywords: Financial Development, Economic Growth, Bond Market Development

JEL Classification: E44, 016, 047

Suggested Citation

Bai, Qinxian and Zhang, Zhiwen, Financial Development and Economic Growth: An Empirical Study on China (May 9, 2013). The South China Journal of Economics in September 2008 (In Chinese). Available at SSRN: https://ssrn.com/abstract=2262680

Qinxian Bai

Liaoning University ( email )

66 Chongshan Road Middle, Huanggu District
Shenyang, Liaoning 110036
China

Zhiwen Zhang (Contact Author)

Sun Yat-sen University-School of International Relations ( email )

Guangzhou, Guangdong
China

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