Banks, Stock Markets, and China's 'Great Leap Forward'

19 Pages Posted: 27 Jul 2006

See all articles by Peter L. Rousseau

Peter L. Rousseau

Vanderbilt University - Department of Economics

Sheng Xiao

Westminster College (Utah)

Date Written: July 21, 2006

Abstract

Using quarterly data for 1995-2005, we examine the role of financial factors in China's recent increases in real sector activity. A series of cointegrated VAR models indicate that banking sector development was central to these successes, but that stock market development, as measured by market size and trading volume, did not contribute significantly to them.

Keywords: finance-growth nexus, investment, stock markets and growth, VAR

JEL Classification: E44, O53

Suggested Citation

Rousseau, Peter L. and Xiao, Sheng, Banks, Stock Markets, and China's 'Great Leap Forward' (July 21, 2006). Available at SSRN: https://ssrn.com/abstract=918900 or http://dx.doi.org/10.2139/ssrn.918900

Peter L. Rousseau (Contact Author)

Vanderbilt University - Department of Economics ( email )

Box 1819 Station B
Nashville, TN 37235
United States
615-343-2466 (Phone)
615-343-8495 (Fax)

HOME PAGE: http://www.vanderbilt.edu/econ/faculty/rousseau.html

Sheng Xiao

Westminster College (Utah) ( email )

1840 South 1300 East
Salt Lake City, UT 84105
United States

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