An Empirical Study on Causality between Financial Development and Economic Growth of Fujian Province

Author

Zhang, Lifang ; Zhang, Fujin

Author_Institution

Dept. of Public Econ., Xiamen Univ., Xiamen, China

Volume

2

fYear

2011

fDate

28-29 March 2011

Firstpage

1059

Lastpage

1062

Abstract

Based on the depth, efficiency of financial development and the scale of securities market, through the Unit Root Test, Co-integration Test and Granger Causality Test methods, we analyzed the causality between financial development and economic growth of Fujian Province during the period from 1978 to 2008. We find out that there is a bidirectional causality between the depth of financial development and economic growth. The efficiency of financial development is the cause of economic growth, but economic growth has no effect on the efficiency of financial development. There is no Granger causality between securities market and economic growth. In the end, we give some policy advices so as to improve financial development and accelerate economic growth.

Keywords

economic indicators; microeconomics; statistical analysis; Fujian province; Granger causality test; causality; cointegration test; economic growth; financial development; securities market; unit root test; Companies; Economic indicators; Finance; Finite impulse response filter; Security; Stock markets; Co-integration; Granger Causality Test; economic growth; financial development;

fLanguage

English

Publisher

ieee

Conference_Titel

Intelligent Computation Technology and Automation (ICICTA), 2011 International Conference on

Conference_Location

Shenzhen, Guangdong

Print_ISBN

978-1-61284-289-9

Type

conf

DOI

10.1109/ICICTA.2011.550

Filename

5751075