Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5090180 | Journal of Banking & Finance | 2010 | 14 Pages |
Abstract
This paper examines bank fund reallocation and regional economic growth based on 1991-2005 provincial-level data of four state-owned commercial banks of China that practice fund reallocation nation-wide. We find no correlation between bank fund reallocation and regional economic growth or between bank loans and regional economic growth. We find, however, a positive association between bank deposits and growth. It appears economic growth leads financial development in China, not the other way around. Furthermore, as China's market-oriented reforms deepen, fund reallocation and loans start to manifest positive effects on growth even though the banks are government owned.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Philip C. Chang, Chunxin Jia, Zhicheng Wang,