Agric. Econ. - Czech, 2011, 57(9):449-456 | DOI: 10.17221/70/2010-AGRICECON

The policy arrangements of financial deepening in rural China --

Lin HE1, Calum G. Turvey2, Dongsheng LIAO3
1 College of Management, Zhongkai University of Agriculture and Engineering, Guangzhou, China
2 Applied Economics and Management Department, Cornell University, Ithaca,

Financial deepening has been successfully tested by many countries, which is also an optimal developing track in practice in rural China. Chinese government has implemented a variety of policies to alter the finance environment in rural areas to get to the financial deepening. These policies include making the multiform financial institutions, making a fair legal environment and clarified property rights. Based on the McKinnon-Shaw model, we test whether there exits the financial deepening in rural China to judge the policy efficiency and we find that no proof can demonstrate the financial deepening in rural China, which means policies of the financial deepening, should be improved.

Keywords: policy arrangements, financial deepening, McKinnon-Shaw Model

Published: September 30, 2011  Show citation

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Lin H, Turvey CG, LIAO D. The policy arrangements of financial deepening in rural China --. Agric. Econ. - Czech. 2011;57(9):449-456. doi: 10.17221/70/2010-AGRICECON.
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