Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74868 
Year of Publication: 
2006
Series/Report no.: 
LICOS Discussion Paper No. 171
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Transition Economics, Leuven
Abstract: 
This paper shows that banking development spurs growth, even in a country with a high growth rate 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 institutions ?banks and non-bank financial institutions ?have a (significantly different) impact on local economic growth. Our findings show that banks outperfirm non-bank financial institutions. Only banking development exerts a statistically and economically significant positive impact on local economic growth. This effect becomes more pronounced when the financial sector is less concentrated.
Subjects: 
growth
financial development
Chinese provinces
banks
JEL: 
E44
G21
Document Type: 
Working Paper

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