Financial development, growth and regional disparity in post-reform China

Arbeitspapier

Deepening financial development and rapid economic growth in China have been accompanied by widening income disparity between the coastal and inland regions. In this paper, by employing panel dataset for 29 Chinese provinces over the period of 1990-2001 and applying the generalized method of moment (GMM) techniques, we examine the impacts of financial development on China’s growth performance. Our empirical results show that financial development significantly promotes economic growth in coastal regions but not in the inland regions; the weak finance-growth nexus in inland provinces may aggravate China’s regional disparities.

Object Details

• ISBN: 9291908703
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Research Paper ; No. 2006/90

Classification and Topics

• Classification: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Financial Institutions and Services: General ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: financial development ; income disparity ; economy ; China ; Regionale Einkommensverteilung ; China ; Momentenmethode

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Liang, Zhicheng
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/63252
• Last update: 10.03.2025, 11:45 AM CET