Does Financial Development ‘ Lead ’ Economic Growth ? The Case of China

@inproceedings{SHAN2006DoesFD,
  title={Does Financial Development ‘ Lead ’ Economic Growth ? The Case of China},
  author={JORDAN SHAN and QI JIANHONG},
  year={2006}
}
  • JORDAN SHAN, QI JIANHONG
  • Published 2006
Using a Vector Autoregression (VAR) approach, we examine the impact of financial development on economic growth in China. Innovation accounting (variance decomposition and impulse response function) analysis is applied to examine interrelationships between variables in the VAR system and, therefore, differs from the more usual approach. We find that financial development comes as the second force (after the contribution from labor input) in leading economic growth in China. This study has… CONTINUE READING
Highly Cited
This paper has 22 citations. REVIEW CITATIONS