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

Author

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  • Cheng, X.
  • Degryse, H.A.

    (Tilburg University, Center For Economic Research)

Abstract

This paper provides evidence on the relationship between finance and high growth in China. Employing data for 27 Chinese provinces over the period 1995-2003, we assess the impact of banks and non-bank financial institutions on local economic growth. We argue that banks have had a larger impact than non-banks on local economic growth as they benefited earlier and more profoundly from China's financial reforms than their non-bank counterparts.
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Suggested Citation

  • Cheng, X. & Degryse, H.A., 2006. "The Impact of Bank and Non-Bank Financial Institutions on Local Economic Growth in China," Discussion Paper 2006-82, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:9ea9a2e7-97db-43bc-8405-8db65f814f9a
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    More about this item

    Keywords

    growth; financial development; Chinese provinces; banks;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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