Finance and economic growth nexus: Evidence from Gansu province in China

Changchuan Zhang

doi:10.1051/e3sconf/202127501007

Finance and economic growth nexus: Evidence from Gansu province in China

Changchuan Zhang^*

^*Corresponding author for this work

Xi'an Jiaotong-Liverpool University

Research output: Contribution to journal › Conference article › peer-review

Abstract

This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables.

Original language	English
Article number	01007
Journal	E3S Web of Conferences
Volume	275
DOIs	https://doi.org/10.1051/e3sconf/202127501007
Publication status	Published - 21 Jun 2021
Externally published	Yes
Event	2021 International Conference on Economic Innovation and Low-carbon Development, EILCD 2021 - Qingdao, China Duration: 28 May 2021 → 30 May 2021

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10.1051/e3sconf/202127501007

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title = "Finance and economic growth nexus: Evidence from Gansu province in China",

abstract = "This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables. ",

author = "Changchuan Zhang",

note = "Publisher Copyright: {\textcopyright} The Authors, published by EDP Sciences, 2021.; 2021 International Conference on Economic Innovation and Low-carbon Development, EILCD 2021 ; Conference date: 28-05-2021 Through 30-05-2021",

year = "2021",

month = jun,

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doi = "10.1051/e3sconf/202127501007",

language = "English",

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journal = "E3S Web of Conferences",

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TY - JOUR

T1 - Finance and economic growth nexus

T2 - 2021 International Conference on Economic Innovation and Low-carbon Development, EILCD 2021

AU - Zhang, Changchuan

N1 - Publisher Copyright: © The Authors, published by EDP Sciences, 2021.

PY - 2021/6/21

Y1 - 2021/6/21

N2 - This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables.

AB - This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables.

UR - http://www.scopus.com/inward/record.url?scp=85108418843&partnerID=8YFLogxK

U2 - 10.1051/e3sconf/202127501007

DO - 10.1051/e3sconf/202127501007

M3 - Conference article

AN - SCOPUS:85108418843

SN - 2555-0403

VL - 275

JO - E3S Web of Conferences

JF - E3S Web of Conferences

M1 - 01007

Y2 - 28 May 2021 through 30 May 2021

ER -

Finance and economic growth nexus: Evidence from Gansu province in China

Abstract

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