JOURNAL OF BEIJING UNIVERSITY OF POSTS AND TELECOM ›› 2016, Vol. 18 ›› Issue (5): 74-81.

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Financial Development, Energy Consumption and Economic Growth

  

  1. 1. School of Economics and Management, Gansu Institute of Political Science and Law, Lanzhou
     730070, China;2. College of Economics, Northwest Normal University, Lanzhou 730070, China
  • Received:2016-05-03 Online:2016-10-31

Abstract:

  Based on Chinese panel data from the year of 2006 to 2014, factor analysis is used to set up financial
development comprehensive evaluation indices, and the relations among China’s financial development, energy
consumption and economic growth and differences in development among eastern area, central area and western area
are empirically analyzed by means of SYS-GMM method. The empirical results show that financial development and
energy consumption have a significant positive correlation with China’s economic growth; energy consumption has a
negative correlation with economic growth if financial development helps improve the energy use efficiency.
Financial development and energy consumption’s promotion to economic growth is significantly different in the
three regions mentioned above; in particular, the promotion of financial development to economic growth shows
decreasing trend from eastern area to western area, and energy consumption promotes economic growth mostly in
western area, followed by eastern area and central area.

Key words:  financial development, energy consumption, economic growth, dynamic panel model

CLC Number: