Abstract
We examine whether China has benefited more from financial development than other countries. The results show that financial development has been less significant for growth in China than in other countries, even when China is compared with other transition economies.
Notes
1 See Cipollina and Salvatici (Citation2010).
2 See http://ratio.se/sv/medarbetare/forskare/patrik-tingvall.aspx for a listing of the included studies.
3 Görg and Strobl (Citation2001) obtained 25 observations, Meyer and Sinani (Citation2009) obtained 121 observations and Gustavsson Tingvall and Ljungwall (Citation2012) obtained 263 observations.
4 We identify six outliers (12 < t-value < −10).
5 Guariglia and Poncet (Citation2008) discuss the absence of a direct link between financial development and economic growth in China.
6 By establishing cross-border relationships with foreign firms, private domestic firms can bypass both the financial and legal obstacles that they face at home. In fact, FDI can be seen as a form of equity financing (Harrison et al., Citation2004).
7 See, e.g. Podpiera (Citation2006) for an analysis of China's banking system.