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Financial Sector Development and Growth: The Chinese Experience

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  • Iftekhar Hasan
  • Mingming Zhou

Abstract

This paper documents the financial and institutional developments of China during the past two decades, when China was successfully transformed from a rigid central-planning economy to a dynamic market economy following its unique path. We empirically examine the relationship between financial development and economic growth in China by employing a panel sample covering 31 Chinese provinces during the important transition period 1986-2002. Our evidence suggests that the development of financial markets, institutions, and instruments have been robustly associated with economic growth in China.

Suggested Citation

  • Iftekhar Hasan & Mingming Zhou, 2006. "Financial Sector Development and Growth: The Chinese Experience," WIDER Working Paper Series RP2006-85, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-85
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2006-85.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Sin-Yu Ho & Bernard Njindan Iyke, 2018. "Finance-growth-poverty nexus: a re-assessment of the trickle-down hypothesis in China," Economic Change and Restructuring, Springer, vol. 51(3), pages 221-247, August.
    4. Zhao, Jing & Zhao, Ziru & Zhang, Huan, 2021. "The impact of growth, energy and financial development on environmental pollution in China: New evidence from a spatial econometric analysis," Energy Economics, Elsevier, vol. 93(C).

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