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

Changchuan Zhang*

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review


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 languageEnglish
Article number01007
JournalE3S Web of Conferences
Publication statusPublished - 21 Jun 2021
Externally publishedYes
Event2021 International Conference on Economic Innovation and Low-carbon Development, EILCD 2021 - Qingdao, China
Duration: 28 May 202130 May 2021


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