Are Chinese State-owned Bank Loans Growth-promoting? A Sectoral Analysis
(2011) EKHR31 20111Department of Economic History
- Abstract
- Given the unique development of China’s financial sector, the country provides an interesting basis for study of the relationship between bank-based finance and growth. In its sectoral analysis of the relationship between state-owned bank lending and GDP growth, the paper provides evidence of a positive and statistically significant relationship between state-owned bank credit and GDP between 1978 and 2005 in those sectors that receive large quantities of credit funds from state-owned banks. Also based on evidence from those sectors with large accumulations of credit funds from state-owned banks, the study supports a finance-led growth hypothesis based on the results of Granger causality testing. Finally, the study establishes evidence for... (More)
- Given the unique development of China’s financial sector, the country provides an interesting basis for study of the relationship between bank-based finance and growth. In its sectoral analysis of the relationship between state-owned bank lending and GDP growth, the paper provides evidence of a positive and statistically significant relationship between state-owned bank credit and GDP between 1978 and 2005 in those sectors that receive large quantities of credit funds from state-owned banks. Also based on evidence from those sectors with large accumulations of credit funds from state-owned banks, the study supports a finance-led growth hypothesis based on the results of Granger causality testing. Finally, the study establishes evidence for a stronger link between state-owned bank credit and GDP following the 1995 Commercial Bank Law, indicating that China’s bank reform effort was effective in improving the efficiency of its financial sector. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1981595
- author
- Forcino, Rachel LU
- supervisor
-
- Håkan Lobell LU
- organization
- course
- EKHR31 20111
- year
- 2011
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- China, state-owned commercial bank, finance, economic growth
- language
- English
- id
- 1981595
- date added to LUP
- 2011-07-07 10:41:53
- date last changed
- 2011-07-07 10:41:53
@misc{1981595, abstract = {{Given the unique development of China’s financial sector, the country provides an interesting basis for study of the relationship between bank-based finance and growth. In its sectoral analysis of the relationship between state-owned bank lending and GDP growth, the paper provides evidence of a positive and statistically significant relationship between state-owned bank credit and GDP between 1978 and 2005 in those sectors that receive large quantities of credit funds from state-owned banks. Also based on evidence from those sectors with large accumulations of credit funds from state-owned banks, the study supports a finance-led growth hypothesis based on the results of Granger causality testing. Finally, the study establishes evidence for a stronger link between state-owned bank credit and GDP following the 1995 Commercial Bank Law, indicating that China’s bank reform effort was effective in improving the efficiency of its financial sector.}}, author = {{Forcino, Rachel}}, language = {{eng}}, note = {{Student Paper}}, title = {{Are Chinese State-owned Bank Loans Growth-promoting? A Sectoral Analysis}}, year = {{2011}}, }