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Bengt Söderlund . Photo

Bengt Söderlund

Senior lecturer

Bengt Söderlund . Photo

Capital Freedom, Financial Development and Provincial Economic Growth in China

Author

  • Bengt Söderlund
  • Patrik Tingvall

Summary, in English

For more than three decades, China has managed to combine rapid economic growth with a strictly regulated financial sector. The discrepancy between economic and financial development has raised the question of whether China might be an exception to the so‐called finance–growth nexus. This study examines the relationship between finance and growth at the provincial level in China using a new set of measures of capital freedom and financial development. The results indicate that capital freedom and financial development are associated with both higher income and growth rates. In particular, we find that the marketisation of financial institutions and strengthening of legal and government institutions have a particularly strong impact on income and growth in low‐income provinces.

Publishing year

2017

Language

English

Pages

764-787

Publication/Series

World Economy

Volume

40

Issue

4

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economics

Status

Published

ISBN/ISSN/Other

  • ISSN: 1467-9701