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.
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
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