Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5048133 | China Economic Review | 2006 | 17 Pages |
Abstract
This paper investigates the relationship between financial development and economic growth for the case of China over the period 1952-2001. After considering the time series characteristics of the dataset, a multivariate vector autoregressive (VAR) framework is used as an appropriate specification and the long-run relationship among financial development, growth and other key growth factors is analyzed in a theoretically based high dimensional system by identification of co-integrating vectors through tests of over-identifying restrictions. The empirical results suggest that there exists a unidirectional causality from economic growth to financial development, conclusions departing distinctively from those in the previous studies.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Qi LIANG, Jian-Zhou TENG,