Finance and local economic growth: New evidence from China
利用2009-2018年中国275个城市数据，剔除地方政府融资平台贷款后构建更准确的金融发展指数，发现贷款占GDP比重越高，经济增长反而越低，原因包括银行信贷歧视、房地产泡沫和实体与金融部门失衡。
Abstract We study the relationship between finance and growth using a sample of 275 Chinese cities from 2009 to 2018. We exclude bank loans to local governments through the local government financing vehicles (LGFVs) and construct a better financial development index which measures the level of loans extended by banks to enterprises and households. We find that financial development in the form of a higher loan‐to‐GDP ratio leads to lower economic growth. This negative relationship between finance and growth may be attributed to various mechanisms, including discrimination in bank lending, housing market bubbles, and an imbalance in growth between real and financial sectors.