SHS Web of Conferences
Volume 25, 2016ICITCE 2015 – 3rd International Conference on Information Technology and Career Education
|Number of page(s)||5|
|Section||Economy and technology|
|Published online||22 April 2016|
Empirical study with structural break on the relationship between financial development and economic growth of Jiangxi province
1 Professor of Business school, Jiangxi Normal University, Nanchang, Jiangxi, China
2 Postgraduate of International Education School,Jiangxi Normal University, Nanchang, Jiangxi, China
The empirical study over the period 1978-2011 found that the relationship between real per capita GDP and financial interrelation ratio structurally broke since 2004. From 1978 to 2003, economic growth and financial development had a long-term co-integration, and it showed one-way supply relationship according to the Granger causality test, which means the economic growth have a slowly leading function to the development of finance. From 2004 to 2011, the correlation between them became weaker and had no Granger causality, but there had a long-term co-integration and mutual causality relationship existed between loan and GDP during the whole period. From it we can see loan could boost output more persistently. Therefore, the enhanced economic power of Jiangxi province could promote further development of regional financial service industries, and we would propose some related policy suggestions in this paper.
Key words: financial development / economic growth / structural break / Jiangxi province
© Owned by the authors, published by EDP Sciences, 2016
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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