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Financial Vulnerability, Capital Shocks and Economic Growth: Evidence from China (2005—2014)

European Journal of Business Science and Technology

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Field Value
 
Title Financial Vulnerability, Capital Shocks and Economic Growth: Evidence from China (2005—2014)
 
Creator Zhang, Chunpeng
Kang, Rong
Feng, Chen
 
Description Taking the leading role of the banking industry in the financial system into consideration, this paper constructed a financial vulnerability index by using the method of principal component analysis, and found China’s financial vulnerability showed a slightly upward trend in general. In order to confirm the macro factors affecting financial fragility, dynamic regression models were constructed. As a result, the authors obtained seven major macro factors. Finally, the authors determined that an overheated economy, increasing inflation, excessive growth of the country’s fiscal expenditures, and export shocks will increase financial vulnerability. However, the increasing investment in real estates and fixed assets may reduce the risk in the financial market. Therefore, China needs to adapt to the new normal economic development model, weaken government intervention in the financial markets, deepen financial reforms, and maintain steady development in the financial system.
 
Publisher Mendel University in Brno
 
Date 2016-11-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
application/x-rar
application/vnd.openxmlformats-officedocument.wordprocessingml.document
application/pdf
application/pdf
 
Identifier https://journal.ejobsat.cz/index.php/ejobsat/article/view/56
10.11118/ejobsat.v2i1.56
 
Source European Journal of Business Science and Technology; Vol 2 No 1 (2016); pp. 23–31
2694-7161
2336-6494
 
Language eng
 
Relation https://journal.ejobsat.cz/index.php/ejobsat/article/view/56/pdf_16
https://journal.ejobsat.cz/index.php/ejobsat/article/view/56/115
https://journal.ejobsat.cz/index.php/ejobsat/article/view/56/116
https://journal.ejobsat.cz/index.php/ejobsat/article/view/56/118
https://journal.ejobsat.cz/index.php/ejobsat/article/view/56/119
 
Rights Copyright (c) 2016 European Journal of Business Science and Technology