Notice of RetractionDynamic effects of trade openness on financial development in China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

By employing generalized impulse response function and variance decomposition method, with time series data from 1982 to 2009, this paper analyzed the dynamic effects of trade openness on financial development in China. The results of impulse response function analysis show that foreign trade and foreign capital promote financial development in China, but there exists time lag and obvious difference between the positive effects. The results of variance decomposition reveal that foreign trade and foreign capital are both important for China´s financial development, and the contributions of foreign trade and foreign capital on bank credit and securities market are different. In addition, the researches also verify that income growth of residents is important for the development of securities market in China.