E3S Web Conf.
Volume 275, 20212021 International Conference on Economic Innovation and Low-carbon Development (EILCD 2021)
|Number of page(s)||7|
|Section||Energy Application and Ecological Resource Sustainability|
|Published online||21 June 2021|
Finance and economic growth nexus: evidence from Gansu province in China
International Business School Suzhou Xi’an Jiaotong-liverpool University Suzhou, Jiangsu 215123, China
* Corresponding author: Changchuan.Zhang18@student.xjtlu.edu.cn
This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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