Banking Structure and Economic Growth : Evidence from China

With panel data for 28 Chinese provinces (autonomous regions, municipalities) during 1985-2002, this paper assesses the effect of banking structure on economic growth. Banking structure is defined as the relative importance of banks of different size in the banking sector. The market share of small...

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Main Authors:	Lin, Justin Yifu, Sun, Xifang
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Financial Markets and the Macroeconomy E440 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Production, Pricing, and Market Structure Size Distribution of Firms L110 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: Financial Economics P340
Online Access:	http://hdl.handle.net/10986/4703

id	okr-10986-4703
recordtype	oai_dc
spelling	okr-10986-47032021-04-23T14:02:19Z Banking Structure and Economic Growth : Evidence from China Lin, Justin Yifu Sun, Xifang Financial Markets and the Macroeconomy E440 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Production, Pricing, and Market Structure Size Distribution of Firms L110 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: Financial Economics P340 With panel data for 28 Chinese provinces (autonomous regions, municipalities) during 1985-2002, this paper assesses the effect of banking structure on economic growth. Banking structure is defined as the relative importance of banks of different size in the banking sector. The market share of small banking institutions is taken as a proxy to measure the banking structure. In dealing with the potential endogeneity problem, this paper constructs an instrumental variable for banking structure with the information on the commercialization reform of state-owned banks initiated in 1994. The estimation results from a two-way fixed-effect model show that increases in the market share of small banking institutions enhance economic growth in contemporary China. 2012-03-30T07:29:19Z 2012-03-30T07:29:19Z 2009 Journal Article Frontiers of Economics in China 16733444 http://hdl.handle.net/10986/4703 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Financial Markets and the Macroeconomy E440 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Production, Pricing, and Market Structure Size Distribution of Firms L110 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: Financial Economics P340
spellingShingle	Financial Markets and the Macroeconomy E440 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Production, Pricing, and Market Structure Size Distribution of Firms L110 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: Financial Economics P340 Lin, Justin Yifu Sun, Xifang Banking Structure and Economic Growth : Evidence from China
geographic_facet	China
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	With panel data for 28 Chinese provinces (autonomous regions, municipalities) during 1985-2002, this paper assesses the effect of banking structure on economic growth. Banking structure is defined as the relative importance of banks of different size in the banking sector. The market share of small banking institutions is taken as a proxy to measure the banking structure. In dealing with the potential endogeneity problem, this paper constructs an instrumental variable for banking structure with the information on the commercialization reform of state-owned banks initiated in 1994. The estimation results from a two-way fixed-effect model show that increases in the market share of small banking institutions enhance economic growth in contemporary China.
format	Journal Article
author	Lin, Justin Yifu Sun, Xifang
author_facet	Lin, Justin Yifu Sun, Xifang
author_sort	Lin, Justin Yifu
title	Banking Structure and Economic Growth : Evidence from China
title_short	Banking Structure and Economic Growth : Evidence from China
title_full	Banking Structure and Economic Growth : Evidence from China
title_fullStr	Banking Structure and Economic Growth : Evidence from China
title_full_unstemmed	Banking Structure and Economic Growth : Evidence from China
title_sort	banking structure and economic growth : evidence from china
publishDate	2012
url	http://hdl.handle.net/10986/4703
_version_	1764392454834880512

Banking Structure and Economic Growth : Evidence from China

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