Back Issues 11-20

FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: EVIDENCE FROM FINANCIAL LEGAL ENVIRONMENT PERSPECTIVE

Wen-Jie, Yang

Lecturer, School of Business, Lingnan Normal University, Zhanjiang,

Guangdong, China, This email address is being protected from spambots. You need JavaScript enabled to view it.

Shun-Ho, Chu

DBA, School of Business, Macau University of Science and Technology,

Macau, China, This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

As reforms of China's market economic system have deepened, the need to strengthen the rule of law over the country's economic development is becoming ever more urgent. Law is one of the key factors affecting financial development, and China's socialist market economy is inseparable from its development of the rule of law. In this study, based on the data from 31 provinces, direct controlled municipalities, and autonomous regions in China from 2005 to 2017, panel data analysis is conducted to explore the impact of financial development on economic growth from a financial legal environment perspective. The results reveal that the Herfindahl- Hirschmann Index and concentration ratio of lawyers have a significantly positive impact on economic growth, whereas the number of lawyer per 10,000 people, number of law firms per 10,000 people, and concentration ratio of law firms have a significantly negative impact on economic growth.

Keywords: Financial development, economic growth, financial legal environment

Attachments:

0948 Final.pdf

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174 kB