The Relationship Between Financial Development and Economic Growth: Evidence From China

Xiaohui Liu (The University of Luton)
Chang Shu (Hong Kong Monetary Authority)

Studies in Economics and Finance

ISSN: 1086-7376

Publication date: 1 January 2002

Abstract

This paper investigates the causal links between financial development and economic growth in China by employing the Granger causality test within a VARECM framework. Bi‐directional causality is found between financial development and growth, suggesting that economic growth and financial development are mutually reinforcing under the open‐door policy.

Citation

Liu, X. and Shu, C. (2002), "The Relationship Between Financial Development and Economic Growth: Evidence From China", Studies in Economics and Finance, Vol. 20 No. 1, pp. 76-84. https://doi.org/10.1108/eb028760

Publisher

:

MCB UP Ltd

Copyright © 2002, MCB UP Limited

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