Credit as an instrument for growth: A monetary explanation of the Chinese growth story

Peter Bofinger, Lisa Geißendörfer, Thomas Haas and Fabian Mayer

No 107, W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics

Abstract: This study describes the Chinese growth model over the past 40 years. We show that China's growth model, with its dominant role of the banking system and "the banker", is a perfect illustration of the necessity and power of Schumpeter's "monetary analysis". This approach has allowed us to elaborate theoretically and empirically the uniqueness of the Chinese model. In our empirical analysis, we use a new dataset of Chinese provincial data to analyze the impact of the financial system, especially banks, on Chinese economic development. We also empirically assess the role of the financial system in Chinese industrial policy and provide case studies of the effects of industrial policy in specific sectors. Finally, we also discuss macroeconomic dimensions of the Chinese growth process and lessons that can be drawn from the Chinese experience for other countries.

Keywords: Bank credit; Bank-led Growth; China; Economic development; Economic growth; Finance; Finance-growth nexus; Industrial Policy; Strategic Emerging Industries (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ban, nep-cna, nep-fdg and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/279552/1/1867607425.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:wuewep:279552

DOI: 10.25972/OPUS-32880

Access Statistics for this paper

More papers in W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().