Property Rights System and Financial Development, Economic Growth: Developing Country's Evidence

摘要

the purpose of this paper is to explore the relationship between the property rights system and the financial development as well as the property rights system and economic growth in developing counties such as China. The paper uses statistical and econometric methods to analyze the finance data in Asia and Latin America, and economic data in China combined with property rights institutional changes data. The results are following: (1) In developing countries of the higher property rights values, their commercial banks and the stock market are in higher development level. In fact, financial reform and development problems are usually caused due to imperfect property rights system, and such imperfections affect the occurrence of financial risks, and even the financial crisis. (2) Property rights institutional changes promoted the process of the Chinese market, while market-oriented process has promoted changes in China's property rights system. (3) With regard to long period, there exists two-way Granger causality between property rights institutional changes and economic growth, both of them promote each other and maintain a positive relationship.