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Inequality and Growth in Modern China$
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Guanghua Wan

Print publication date: 2008

Print ISBN-13: 9780199535194

Published to Oxford Scholarship Online: May 2008

DOI: 10.1093/acprof:oso/9780199535194.001.0001

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Financial Development, Growth, and Regional Disparity in Post‐Reform China

Financial Development, Growth, and Regional Disparity in Post‐Reform China

(p.112) 6 Financial Development, Growth, and Regional Disparity in Post‐Reform China
Inequality and Growth in Modern China

Zhicheng Liang

Oxford University Press

Deepening financial development and rapid economic growth in China have been accompanied by widening income disparity between the coastal and inland regions. This chapter examines the impacts of financial development on China's growth performance by employing panel data covering twenty-nine Chinese provinces over the period of 1990-2001 and applying the generalized method of moment (GMM) techniques. The empirical results show that financial development significantly promotes economic growth in coastal regions but not in the inland regions; the weak finance-growth nexus in inland provinces may help aggravate China's regional disparities.

Keywords:   income disparity, coastal regions, inland regions, finance-growth nexus, regional disparities

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