Bank fund reallocation and economic growth: Evidence from China
This paper examines bank fund reallocation and regional economic growth based on 1991-2005 provincial-level data of four stateowned commercial banks of China that practice fund reallocation nation-wide. We find no correlation between fund reallocation and bank loans on the one hand and regional economic growth on the other. But we find a positive association between bank deposits and growth. When segmenting the 15 years into three periods, we find increasingly significant positive correlation between fund reallocation and bank loans on the one hand, and growth on the other, especially for the most recent period, 2001-2005. It appears economic growth leads financial development in China, not the other way around. And 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.
China bank loans finance and growth fund reallocation state-owned banks
Philip C. Chang Chunxin Jia Zhicheng Wang
Haskayne School of Business, University of Calgary, Calgary, AB. Canada T2N 1N4 Guanghua School of Management, Peking University, Beijing, China
国际会议
广州
英文
1-44
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）