Land Capitalization, Economic Growth and Regional Financial Expansion in China
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| Title | Land Capitalization, Economic Growth and Regional Financial Expansion in China
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| Author | Guo Feng |
| Organization | School of Economics of Fudan University, Shanghai Finance Institute |
| Email | guofengsfi@163.com |
| Key Words | Land Capitalization; Financial Expansion; Economic Growth; IV Method |
| Abstract | In the past ten years, the expansion of the financial intermediation in China is very remarkable. In this paper, we interpret this phenomenon from the angle of land capitalization, using the panel data for 30 provinces of China covering the years from 1998 to 2010. Based on the different model settings—static and dynamic panel model, we implement different instrumental variable strategies—lagged instrumental variables, external instrumental variables and a combination set of internal and external instrumental variables in the dynamic panel model—to control the endogeneity of the related variables. The empirical results show that the land capitalization promotes significantly the expansion of financial intermediation of the provinces in China, after controlling the influence of the per capita income and other inter-provincial economic disparities. The Chinese-style pattern of the land supply not only has the land finance effect, but also a macro-financial effect of capital. |
| Serial Number | |
| Time | 2014-08-12 |
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