Bank Efficiency and Regional Economic Growth: Evidence from China

Authors

Hong Zhuang, Indiana University South Bend
Haiyan Yin, Indiana University South Bend
Miao Grace Wang, Marquette UniversityFollow
Jiawen Yang, George Washington University

Document Type

Article

Publication Date

2019

Publisher

Peking University Press

Source Publication

Annals of Economics and Finance

Source ISSN

1529-7373

Abstract

This paper examines for the first time the relationship between bank efficiency and regional economic growth in China with provincial data over 1995 - 2014. We find consistent and strong evidence that bank efficiency positively affects regional economic growth. Further, bank efficiency exerts a more pronounced impact on economic growth in inland provinces than coastal regions. The insignificant effect of the quantity of credit in our regressions suggests that a mere expansion of financial volume is not effective in promoting regional economic growth, whereas the improvement in the quality of financial intermediation plays an important role fostering provincial economic growth.

Comments

Published version. Annals of Economics and Finance, Vol. 20, No. 2 (2019): 661-689. Publisher link. © 2019 Peking University Press. Used with permission.

Recommended Citation

Zhuang, Hong; Yin, Haiyan; Wang, Miao Grace; and Yang, Jiawen, "Bank Efficiency and Regional Economic Growth: Evidence from China" (2019). Economics Faculty Research and Publications. 639.
https://epublications.marquette.edu/econ_fac/639