Abstract:
No one would doubt on the positive relationship between financial development and economic growth, but what if the financial development grows much faster than the real economy to a certain level, will the development exert a negative impact on economic growth? In order to solve this problem, this paper proposes the concept of exceeding financial development, referring to a situation that financial sectors develop faster than the real economy to a certain degree which would lead to the sub-optimal allocation of resources, systemic risk of society and lower economic growth. On such basis, this paper explains the mechanism of exceeding financial development by modifying the AK model and intends to testify whether the exceeding financial development situation exists in China through first-order difference generalized method of moments(FD-GMM)using a different time range of Chinese provincial panel data. The results show that after controlling relative factors affecting the economic growth, the relationship between financial development and economic growth is nonlinear and if the financial sectors develop higher than the real economy to a certain level, the development would exert negative influence on economic growth.
黄宪, 黄彤彤. 论中国的“金融超发展”[J]. 金融研究, 2017, 440(2): 26-41.
HUANG Xian, HUANG Tongtong. On the Exceeding Financial Development in China. Journal of Financial Research, 2017, 440(2): 26-41.
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