Financial-growth Nexus in China

China began its current economic reform in the late 1970s. Since initiating its reforms, China has restructured its banking sector while launched equity market in early 1990s. China has been experiencing a rapid growth at an average rate over 8 percent per annum during the last two decades. Does the development of financial intermediaries contribute to the economic growth in China? This study examines how financial intermediaries in China influence the real sector growth. A particular focus is mainly set up on the direction of causality between banking sector and/or stock market and economic growth. The analysis should help to answer the questions: - Does each economic region in China adopt the same growth pattern? - Does the development of banking sector lead to the real sector growth? - Is the development of banking sector a product of economic growth? - Does the same direction of financial-growth causality apply to the entire country? - Does the development of stock market lead to the economic growth? What kind of role has the stock market been performing in Chinas economic growth? The book is addressed to economic analysts and researchers who are interested in studying the financial-growth nexus in the context of China in a statistical manner.