Thoughts on Banking and Finance, July-December, 2013
The impact of financial development on China's economic growth-an empirical study
- DOI
- https://doi.org/10.64968/bbta.tbf.2013.02.02.01
- Journal volume & issue
-
Vol. 2 Issue 2
pp. 13-23
- Authors
- Xiaolong Zhu Weidong Zhu Suai Ding Wencun Shu
Abstract
Through employing financial and economic growth theories and adopting the panel Data of 27 provinces from 1995 to 2010, this paper uses the panel data model to measure the influence of two different organizations on economic growth: banks and non-bank financial institutions. Results show that there is a significant and economic correlation between economic growth and banks instead of non-bank financial institutions. On this basis, this paper further examines the reform of financial institutions. Final\y, a conclusion is drawn that large state-owned banks should be commercialized and a new financial system composed of medium and small banks should be established.
Keywords: Financial development; banks; non-bank financial institutions; economic growth; panel data model.
JEL Classification: G21, G23, O16, O40, C23