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

By Xiaoqiang Cheng, Hans Degryse. 2010

198 citations recorded by the source corpus.

This paper provides evidence on the relationship between finance and growth in a fast growing country, such as China. Employing data of 27 Chinese provinces over the period 1995–2003, we study whether the financial development of two different types of financial institutions — banks and non-banks — have a (significantly different) impact on local economic growth. Our findings indicate that banking development shows a statistically significant and economically more pronounced impact on local economic growth.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3fe7c626b857dc143da53bb840aa779d097d4df7