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Could Financial Distortions be no Impediment to Economic Growth After All? Evidence from China

Guariglia, A.; Poncet, S.

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Authors

A. Guariglia

S. Poncet



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.

Citation

Guariglia, A., & Poncet, S. (2008). Could Financial Distortions be no Impediment to Economic Growth After All? Evidence from China. Journal of Comparative Economics, 36(4), 633-657. https://doi.org/10.1016/j.jce.2007.12.003

Journal Article Type Article
Publication Date Dec 1, 2008
Deposit Date May 22, 2009
Publicly Available Date Jun 9, 2009
Journal Journal of Comparative Economics
Print ISSN 0147-5967
Electronic ISSN 1095-7227
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 36
Issue 4
Pages 633-657
DOI https://doi.org/10.1016/j.jce.2007.12.003
Keywords Financial development, Financial distortions, Economic growth, Capital accumulation, Productivity growth, China.
Public URL https://durham-repository.worktribe.com/output/1559336

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