Financial Intermediation and Growth : Chinese Style
The author analyzes the relationship between growth and financial intermediation at the sub-national level within China. Does the quality of the banking sector in a province affect its rate of growth? Do state and non-state banking sectors perform...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/04/2350351/financial-intermediation-growth-chinese-style http://hdl.handle.net/10986/18229 |
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okr-10986-182292021-04-23T14:03:42Z Financial Intermediation and Growth : Chinese Style Boyreau-Debray, Genevieve FINANCIAL INTERMEDIATION GROWTH PATTERNS BANKING SYSTEMS CORPORATE FINANCE PERFORMANCE INDICATORS ECONOMIC GROWTH CAPITAL MARKETS REGIONAL ANALYSIS CREDIT MARKETS TRANSITION ECONOMIES FRAGMENTATION CREDIT EXPANSION STATE-OWNED BANKS ACCOUNTING AGRICULTURE BALANCE SHEET BANK BANK ASSETS BANK CREDIT BANK LENDING BANK LIQUIDITY BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING STABILITY BANKING SYSTEM BANKS BENCHMARK CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL MARKETS CAPITAL MOBILITY CENTRAL BANK CENTRAL BANK LENDING CENTRAL BANKS CENTRAL GOVERNMENT CONTROL COMMERCIAL BANKS CORPORATE CONTROL CORPORATE SECTOR COUNTRY COMPARISONS CREDIT DEPOSITS DEVALUATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FINANCING SOURCES FOREIGN BANKS FOREIGN EXCHANGE FREE MARKETS GDP GDP PER CAPITA GOVERNMENT BONDS GROWTH MODELS GROWTH RATE HUMAN CAPITAL INCOME INCOME DISTRIBUTION INDUSTRIALIZED COUNTRIES INEFFICIENCY LIVING STANDARDS MARKET INTEGRATION MONOPOLIES MORAL HAZARD MUNICIPALITIES NATIONAL OUTPUT PLANNED ECONOMY PRIVATE HOUSING PRODUCT MARKETS PROFIT MAXIMIZATION PROFITABILITY PUBLIC ENTERPRISES QUOTAS REAL GDP REAL SECTOR RISK MANAGEMENT RISK PREMIUMS SAVINGS SPECIALIZED BANKS STATE BANKING STATE BANKS STATE ENTERPRISES TIME SERIES TRADING WORLD TRADE ORGANIZATION WTO STATE-OWNED BANKS ACCOUNTING The author analyzes the relationship between growth and financial intermediation at the sub-national level within China. Does the quality of the banking sector in a province affect its rate of growth? Do state and non-state banking sectors perform differently? Does the structure of the local banking sector affect the rate of provincial economic growth? To answer these questions, the author first uses evidence on the fragmentation of regional capital markets to justify the existence of local credit channels. Second, using a dataset of 26 provinces between 1990 and 1999, she defines and introduces indicators of local banking development into the traditional growth regression framework using the GMM-system estimator. The results suggest that credit extended by the banking sector at the state level has a negative impact on provincial economic growth. This negative effect appears to be attributable to the burden of supporting the state-owned corporate sector rather than to the poor performance of state-owned banks. Moreover, provinces with more diversified banking sectors appear to grow faster. 2014-05-09T19:51:51Z 2014-05-09T19:51:51Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2350351/financial-intermediation-growth-chinese-style http://hdl.handle.net/10986/18229 English en_US Policy Research Working Paper;No. 3027 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FINANCIAL INTERMEDIATION GROWTH PATTERNS BANKING SYSTEMS CORPORATE FINANCE PERFORMANCE INDICATORS ECONOMIC GROWTH CAPITAL MARKETS REGIONAL ANALYSIS CREDIT MARKETS TRANSITION ECONOMIES FRAGMENTATION CREDIT EXPANSION STATE-OWNED BANKS ACCOUNTING AGRICULTURE BALANCE SHEET BANK BANK ASSETS BANK CREDIT BANK LENDING BANK LIQUIDITY BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING STABILITY BANKING SYSTEM BANKS BENCHMARK CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL MARKETS CAPITAL MOBILITY CENTRAL BANK CENTRAL BANK LENDING CENTRAL BANKS CENTRAL GOVERNMENT CONTROL COMMERCIAL BANKS CORPORATE CONTROL CORPORATE SECTOR COUNTRY COMPARISONS CREDIT DEPOSITS DEVALUATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FINANCING SOURCES FOREIGN BANKS FOREIGN EXCHANGE FREE MARKETS GDP GDP PER CAPITA GOVERNMENT BONDS GROWTH MODELS GROWTH RATE HUMAN CAPITAL INCOME INCOME DISTRIBUTION INDUSTRIALIZED COUNTRIES INEFFICIENCY LIVING STANDARDS MARKET INTEGRATION MONOPOLIES MORAL HAZARD MUNICIPALITIES NATIONAL OUTPUT PLANNED ECONOMY PRIVATE HOUSING PRODUCT MARKETS PROFIT MAXIMIZATION PROFITABILITY PUBLIC ENTERPRISES QUOTAS REAL GDP REAL SECTOR RISK MANAGEMENT RISK PREMIUMS SAVINGS SPECIALIZED BANKS STATE BANKING STATE BANKS STATE ENTERPRISES TIME SERIES TRADING WORLD TRADE ORGANIZATION WTO STATE-OWNED BANKS ACCOUNTING |
| spellingShingle |
FINANCIAL INTERMEDIATION GROWTH PATTERNS BANKING SYSTEMS CORPORATE FINANCE PERFORMANCE INDICATORS ECONOMIC GROWTH CAPITAL MARKETS REGIONAL ANALYSIS CREDIT MARKETS TRANSITION ECONOMIES FRAGMENTATION CREDIT EXPANSION STATE-OWNED BANKS ACCOUNTING AGRICULTURE BALANCE SHEET BANK BANK ASSETS BANK CREDIT BANK LENDING BANK LIQUIDITY BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING STABILITY BANKING SYSTEM BANKS BENCHMARK CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL MARKETS CAPITAL MOBILITY CENTRAL BANK CENTRAL BANK LENDING CENTRAL BANKS CENTRAL GOVERNMENT CONTROL COMMERCIAL BANKS CORPORATE CONTROL CORPORATE SECTOR COUNTRY COMPARISONS CREDIT DEPOSITS DEVALUATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPLOYMENT EQUILIBRIUM EXCHANGE RATE FINANCIAL DEEPENING FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FINANCING SOURCES FOREIGN BANKS FOREIGN EXCHANGE FREE MARKETS GDP GDP PER CAPITA GOVERNMENT BONDS GROWTH MODELS GROWTH RATE HUMAN CAPITAL INCOME INCOME DISTRIBUTION INDUSTRIALIZED COUNTRIES INEFFICIENCY LIVING STANDARDS MARKET INTEGRATION MONOPOLIES MORAL HAZARD MUNICIPALITIES NATIONAL OUTPUT PLANNED ECONOMY PRIVATE HOUSING PRODUCT MARKETS PROFIT MAXIMIZATION PROFITABILITY PUBLIC ENTERPRISES QUOTAS REAL GDP REAL SECTOR RISK MANAGEMENT RISK PREMIUMS SAVINGS SPECIALIZED BANKS STATE BANKING STATE BANKS STATE ENTERPRISES TIME SERIES TRADING WORLD TRADE ORGANIZATION WTO STATE-OWNED BANKS ACCOUNTING Boyreau-Debray, Genevieve Financial Intermediation and Growth : Chinese Style |
| geographic_facet |
East Asia and Pacific China |
| relation |
Policy Research Working Paper;No. 3027 |
| description |
The author analyzes the relationship
between growth and financial intermediation at the
sub-national level within China. Does the quality of the
banking sector in a province affect its rate of growth? Do
state and non-state banking sectors perform differently?
Does the structure of the local banking sector affect the
rate of provincial economic growth? To answer these
questions, the author first uses evidence on the
fragmentation of regional capital markets to justify the
existence of local credit channels. Second, using a dataset
of 26 provinces between 1990 and 1999, she defines and
introduces indicators of local banking development into the
traditional growth regression framework using the GMM-system
estimator. The results suggest that credit extended by the
banking sector at the state level has a negative impact on
provincial economic growth. This negative effect appears to
be attributable to the burden of supporting the state-owned
corporate sector rather than to the poor performance of
state-owned banks. Moreover, provinces with more diversified
banking sectors appear to grow faster. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Boyreau-Debray, Genevieve |
| author_facet |
Boyreau-Debray, Genevieve |
| author_sort |
Boyreau-Debray, Genevieve |
| title |
Financial Intermediation and Growth : Chinese Style |
| title_short |
Financial Intermediation and Growth : Chinese Style |
| title_full |
Financial Intermediation and Growth : Chinese Style |
| title_fullStr |
Financial Intermediation and Growth : Chinese Style |
| title_full_unstemmed |
Financial Intermediation and Growth : Chinese Style |
| title_sort |
financial intermediation and growth : chinese style |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/04/2350351/financial-intermediation-growth-chinese-style http://hdl.handle.net/10986/18229 |
| _version_ |
1764439434127736832 |