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Financial Reforms, Growth and Regional Disparity in Post-reform China

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  • Zhicheng Liang

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, by employing the Generalized Method of Moment (GMM) techniques and Chinese provincial level data from 1991 to 2003, we empirically investigate the relationship between finance and growth in post-reform China. We find that financial development significantly promotes economic growth in coastal regions but not in inland regions; the weak finance-growth nexus in inland provinces has exacerbated China's regional disparity.

Suggested Citation

  • Zhicheng Liang, 2011. "Financial Reforms, Growth and Regional Disparity in Post-reform China," Working Papers halshs-00556978, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00556978
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00556978
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    References listed on IDEAS

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    1. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    2. Čihák, Martin & Demirgüç-Kunt, Asli, 2012. "Financial Structure and Incentives," National Institute Economic Review, National Institute of Economic and Social Research, vol. 221, pages 23-30, July.
    3. Boyreau-Debray, Genevieve, 2003. "Financial intermediation and growth - Chinese style," Policy Research Working Paper Series 3027, The World Bank.
    4. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    5. Shang-Jin Wei & Ms. Genevieve Boyreau-Debray, 2004. "Can China Grow Faster? A Diagnosis of the Fragmentation of Its Domestic Capital Market," IMF Working Papers 2004/076, International Monetary Fund.
    6. Čihák, Martin & Demirgüç-Kunt, Asli, 2012. "Financial Structure and Incentives," National Institute Economic Review, National Institute of Economic and Social Research, vol. 221, pages 23-30, July.
    7. World Bank, 2001. "Finance for Growth : Policy Choices in a Volatile World," World Bank Publications - Books, The World Bank Group, number 13895.
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    Keywords

    Financial Development; income disparity; Chinese Economy;
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