Does Financial Intermediation Development Increase Per Capita Income in Rural China ?

作者：Pan Suwen^*; Rejesus Roderick M; He Xiurong

来源：China and World Economy, 2009, 17(4): 72-87.

DOI：10.1111/j.1749-124X.2009.01159.x

• Chinese village
• financial intermediation
• per capita income
• quantile regression
• D33
• D63
• G18

This paper investigates the impacts of financial intermediary (or banking) development on village-level per capita income using a Chinese dataset for selected years between 1993 and 2006. The empirical results from a random effect regression model indicate that mean per capita income in rural villages follows an inverted U-shaped path as financial intermediation develops. However, using a pooled quantile regression approach, we find that median per capita income in rural villages follows a positive linear path, rather than an inverted U-shaped path, as financial intermediation develops. The positive linear effect of financial intermediary development is observed at the lower and higher ends of the conditional per capita income distribution. This suggests that development of financial intermediation in China might not have statistically significant differential effects in low-income or high-income rural villages.

• 出版日期2009-8
• 单位中国农业大学