The globalisation of the Chinese financial sector
|Author:||Mgr. Ahemaitijiang Reyisha|
|Year:||2015 - winter|
|Leaders:|| prof. PhDr. Petr Teplý Ph.D.
|Work type:|| Masters
|Awards and prizes:|
|Abstract:||In this thesis we have studied China’s financial sector globalisation by analysing the
determinants of Chinese banking sector profitability, and the relationship between GDP
growth and FDI inflows. For estimating the Chinese banking sector profitability, we
applied system GMM estimation on the annual data of 56 banks currently in China. The
time period of the data is from 2002-2011. We found out that both internal and external
factors have impact on the Chinese banking sector profitability. As we have expected
financial sector globalisation has positive impact on the profitability of banking industry.
For analysing the impacts of financial sector globalisation in terms of FDI contribution to
the Chinese economy, we have tested the relationship between FDI and GDP by running
the VAR model on the macro data over the time period of 1987-2011. We have found
that GDP growth explains the rapid development of FDI, and FDI indirectly influences
the GDP growth by influencing the domestic investments.