Could financial distortions be no impediment to economic growth after all? Evidence from China

Alessandra Guariglia and Sandra Poncet ()

Journal of Comparative Economics, 2008, vol. 36, issue 4, 633-657

Abstract: Using data for 30 Chinese provinces over the period 1989-2003, this study examines the relationship between finance, and real GDP, capital, and total factor productivity growth. We find that traditionally used indicators of financial development and China-specific indicators measuring the level of state interventionism in finance are generally negatively associated with growth and its sources, while indicators measuring the degree of market driven financing in the economy are positively associated with them. These effects have been gradually declining over time, and are weaker for high FDI recipients, suggesting that FDI may be used to alleviate the costs associated with the inefficient banking sector. Journal of Comparative Economics 36 (4) (2008) 633-657.

Keywords: Financial; development; Financial; distortions; Economic; growth; Capital; accumulation; Productivity; growth; China (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (125)

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Working Paper: Could financial distortions be no impediment to economic growth after all? Evidence from China (2008)
Working Paper: Could financial distortions be no impediment to economic growth after all? Evidence from China (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:36:y:2008:i:4:p:633-657

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