Political factors, not growth, drive financial deregulation in China.
The study looked at whether economic growth causes financial deregulation in China. They used temperature and sunshine hours as tools to measure growth in different provinces. The results showed that growth doesn't have a big impact on financial deregulation. Instead, factors like political bias play a significant role in shaping financial policies. This suggests that political and cultural influences are key in deciding how China's financial system evolves. The findings were consistent even when different statistical methods were used to analyze the data.