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The Financial Deepening-Productivity Nexus in China: 1987-2001

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  • Jun Zhang
  • Guanghua Wan
  • Yu Jin

Abstract

The financial intermediation-growth nexus is a widely studied topic in the literature of development economics. Deepening financial intermediation may promote economic growth by mobilizing more investments, and lifting returns to financial resources, which raises productivity. Relying on provincial panel data from China, this paper attempts to examine if regional productivity growth is accounted for by the deepening process of financial development. Towards this end, an appropriate measurement of financial depth is constructed and then included as a determinant of productivity growth.

Suggested Citation

  • Jun Zhang & Guanghua Wan & Yu Jin, 2007. "The Financial Deepening-Productivity Nexus in China: 1987-2001," WIDER Working Paper Series RP2007-08, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-08
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2007-08.pdf
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    References listed on IDEAS

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    1. Ms. Era Dabla-Norris, 2005. "Issues in Intergovernmental Fiscal Relations in China," IMF Working Papers 2005/030, International Monetary Fund.
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    Cited by:

    1. Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India: Evidence from capital markets," Journal of International Money and Finance, Elsevier, vol. 39(C), pages 111-137.
    2. Iftekhar Hasan & Haizhi Wang & Mingming Zhou, 2009. "Do better institutions improve bank efficiency? Evidence from a transitional economy," Managerial Finance, Emerald Group Publishing, vol. 35(2), pages 107-127, January.
    3. Byaro, Mwoya & Pelizzo, Riccardo & Kinyondo, Abel, 2023. "What are the Main Drivers Behind the Acceleration of Tanzania's Economic Growth Over the Past Three Decades?," African Journal of Economic Review, African Journal of Economic Review, vol. 11(4), June.
    4. Jun Zhang, 2008. "China's Economic Growth: Trajectories and Evolving Institutions," WIDER Working Paper Series RP2008-33, World Institute for Development Economic Research (UNU-WIDER).
    5. Salah Abosedra & Ali Fakih & Sajal Ghosh & Kakali Kanjilal, 2023. "Financial development and business cycle volatility nexus in the UAE: Evidence from non‐linear regime‐shift and asymmetric tests," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2729-2741, July.
    6. repec:zbw:bofitp:2008_028 is not listed on IDEAS
    7. Masanori Ohkuma, 2010. "Between Mao and markets: new evidence on segmentation of the bank loan market in China," Applied Economics Letters, Taylor & Francis Journals, vol. 17(12), pages 1213-1218.
    8. Wai Choi Lee & Tsun Se Cheong & Yanrui Wu & Jianxin Wu, 2019. "The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach," Asian Economic Papers, MIT Press, vol. 18(2), pages 126-141, Summer.
    9. Hasan, Iftekhar & Wang, Haizhi & Zhou, Mingming, 2008. "Do better institutions improve bank efficiency? evidence from a transitional economy," BOFIT Discussion Papers 28/2008, Bank of Finland Institute for Emerging Economies (BOFIT).

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    More about this item

    Keywords

    Economic development; Investments; Productivity;
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