The globalisation of the Chinese financial sector

• Thesis title in English: The globalisation of the Chinese financial sector
• Key words: financial sector globalisation, banking sector profitability, FDI, GMM, VAR
• English key words: financial sector globalisation, banking sector profitability, FDI, GMM, VAR
• Academic year of topic announcement: 2014/2015
• Thesis type: diploma thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: prof. PhDr. Petr Teplý, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 11.12.2014
• Date of assignment: 11.12.2014
• Date and time of defence: 11.02.2015 00:00
• Venue of defence: IES
• Date of electronic submission: 04.01.2015
• Date of proceeded defence: 11.02.2015
• Opponents: prof. PhDr. Zuzana Havránková, Ph.D.

Preliminary scope of work

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.

Preliminary scope of work in English

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.