Asset Shortages: the Power or Resistance on Regional Economic Growth?
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| Title | Asset Shortages: the Power or Resistance on Regional Economic Growth?
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| Author | Yang Yang and Yang Shenggang |
| Organization | Hunan University College of Financial and Statistics |
| Email | 952195271@qq.com；sgyang@hnu.edu.cn |
| Key Words | Asset Shortages; the Overlapping Generations Model; Transmission Mechanism; 2SLS;IVQR |
| Abstract | In this paper, we use the overlapping generations model to analyze the transmission channels and mechanisms of "asset shortages" affecting economic growth. Then we use China’s provincial panel data from 2000 to 2010 to conduct an empirical study of the relationship by 2SLS and IVQR. The results show that China's provinces currently and have long been in a state of "asset shortages" , and the regional asset shortages have significantly positive effects on regional economic growth but widened the economic growth gap between provinces. The asset shortages mean that the existence of bubbles in China's regional economy have not reached the level of the bubble economy, and can promote the regional economic growth, but we must guard against the risks of potential bubble economy and the dilemma of regional economic imbalance. So, in order to effectively ensure the asset shortages to sustain the power on economic growth, the key is to deepen financial market’s system construction and the supply-side reform of financial assets. |
| Serial Number | WP1101 |
| Time | 2016-08-23 |
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