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
Date Written: May 9, 2013
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: Suggested Citation