Browse

Institutional Reforms and Spatial Evolution of the Banking System in Henan, China Since 1978

Cited 0 time in Web of Science Cited 0 time in Scopus
Authors
Li, Xiaojian; Zhou, Xiongfei
Issue Date
2008-06
Publisher
Institute for Social Development and Policy Research, Center for Social Sciences, Seoul National University
Citation
Development and Society, Vol.37 No.1, pp. 55-76
Keywords
Regional Financial SystemBank LocationsInstitutional ReformChinaHenan
Abstract
Recent rapid institutional reforms in the financial sector and fast economic growth

make China a special case for studying the spatial evolution of banking system in the particular circumstances. Drawing on data from China’'s four big state-owned banks in the nation’'s largest less-developed, yet rapidly growing interior province of Henan, this paper reveals that the spatial evolution of the regional banking system did not follow the “"stages of banking development”" theory developed in the literature. The regional banking system started from a fairly even spread of national bank branches and moved towards a geographical concentration in the urban centers. Institutional reforms, particularly government deregulation and bank re-organization played a crucial role in driving the changes. Along with diminishing government controls, spatial economic difference directly determined the locations of bank branches. This was proved at high significance levels in the pooled OLS and Fixed Effect regression models. The questionnaire interviews with 58 bank branches further supported the findings. We argue that the different banking practices in the specific institutional background of China may extend the “"stages of banking development”" theory based on evidence from the Western economies.
ISSN
1598-8074
Language
English
URI
http://hdl.handle.net/10371/86708
Files in This Item:
Appears in Collections:
College of Social Sciences (사회과학대학)Institute for Social Development and Policy Research (사회발전연구소)Development and Society Development and Society Vol.37 No.1/2 (2008)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse