Bank Competition, Financial Development and Growth of Financially Dependent Industries: Fresh Evidence from China

Habib Hussain Khan, Abdul Ghafoor (), Fiza Qureshi and Ijaz Ur Rehman

Global Economic Review, 2018, vol. 47, issue 2, 108-134

Abstract: We empirically examine the role of the banking market structure and financial development for the growth of manufacturing and the financially dependent industries in China over the period of 1999–2014. We use both structural and non-structural approaches to assess the banking market structure and relate them to the growth of the manufacturing industries. The results of the study indicate that bank competition inspires industrial growth, particularly the growth of the financially dependent industries. Our findings further suggest that bank concentration undermines the growth of manufacturing industries in general and growth of the financially dependent industries in particular. These results are consistent across a number of sensitivity checks covering alternative measures of financial dependence, institutional factors such as property rights, quality of accounting standards and bank ownership and endogeneity consideration.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/1226508X.2018.1436458 (text/html)
Access to full text is restricted to subscribers.

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:taf:glecrv:v:47:y:2018:i:2:p:108-134

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RGER20

DOI: 10.1080/1226508X.2018.1436458

Access Statistics for this article

Global Economic Review is currently edited by Kap-Young Jeong and Taeyoon Sung

More articles in Global Economic Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().