The Finance–Growth Nexus and Poverty Reduction in Western China

Yanping Huang, Yu Liu and Huakun Wu

Emerging Markets Finance and Trade, 2016, vol. 52, issue 2, 513-521

Abstract: In this article, we study the effect of financial development (FD) on economic growth in western China. Special attention is paid to the western region because of the large-scale development strategy in West China. We specify the regression models based on the endogenous growth theory. The empirical results show that (1) FD can promote economic growth mainly through improving TFP; (2) FD is more important than human capital in promoting GDP growth; (3) The effect of FD on TFP growth is significant statistically in all regions, but it is the most significant economically in the western region of China.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:52:y:2016:i:2:p:513-521

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DOI: 10.1080/1540496X.2016.1110469

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