Financial Development and Economic Growth: Evidence from Cointegration andGranger Causality Tests

摘要

In this paper, we investigate the relationship between financial development and economic growth for the case of China in the period from 1979 to 2008. We use econometric methodology such as unit root test, cointegration test and Granger causality test in this work. The empirical results suggest that there exists a bidirectional relationship between financial development and economic growth in the period from 1979 to 2008, but the relationship between M2 and economic growth is negatively correlated, conclusions departing distinctively from those in the previous studies.