Fredrik N.G. Andersson , Katarzyna Burzynska () and Sonja Opper
Abstract: China’s banking sector is dominated by four distinct organizational forms: policy banks (PBs), state-owned commercial banks (SOCBs), joint stock commercial banks (JSCBs), and rural credit cooperatives (RCCs). Economic analyses have especially focused on the development of bank efficiency and profitability over time. The equally important question - which of China’s banking institutions promote economic growth - has not been explored. Our study uses a novel data set covering the period 1997 to 2008 and employ Granger causality tests to estimate the finance-growth nexus of each of these bank types. Our results show that SOCBs and RCCs do not Granger-cause GDP growth and that SOCBs even have a negative effect on manufacturing growth. By contrast, PBs and JSCBs promote economic growth.
53 pages, September 30, 2014
Full text files
Questions (including download problems) about the papers in this series should be directed to Jens Forssbaeck ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2018-04-03 16:25:45.