Inancial Development and Industrial Growth: an empirical investigation of the manufacturing sector in China

Dear writer,
My dissertation topic is Financial Development and Industrial Growth: an empirical investigation of the manufacturing sector in China. This dissertation is focussed on investigating one of the aspects that constitute internal factors, more specifically, whether financial development has influence on the growth and evolution of an industry or not. Whereas internal factors refer to the degree of macroeconomic stability, factor endowment of a country, educational attainment, institutional development, legal system effectiveness and factor accumulation. This research project attempts to address: Is the growth in industrial structure positively associated with financial sector development in China? And how does the financial mechanism in China promote the evolution of industry structure?

Chapter 2 is literature review and will be addressed by reviewing the current literature on financial development, macroeconomic growth and industry evolution.
1. I want the literature review focus on these 3 aspects. But I donat know how to connect them and make the argument consistent through reviewing different literatures. You can make your own arrangement or order of reviewing literatures and paper of each aspects.
2. In the literature review of the financial development, my tutor said the paper I used were too outdated. The old paper I used were McKinnon (1973), Shaw (1973) and Goldsmithas (1969) etc. So you need to find more recent papers that mainly about a?financial development and capital efficiencya?. And you have to address how does this (financial development in promoting economic growth through high capital productivity) happen from reviewing the literatures.
3. For macroeconomic growth part, the tutor said I have too few important literatures. What I did was talk too much about choosing macro variables and less strong literatures to support the relationship of macro growth and financial development to support the argument. Of course, industries are very important part of the whole country, thatas why I think of doing macro growth literature review.
4. For the industry evolution aspect, I think you should find some papers to talk about the industrial structures change will affect the growth, and what will affect industrial structures to change such as financial intermediaries. Provide some data support from the literatures. There are two recent papers on the misallocation of capital in China that are very important Hsieh-Klenow QJE (2008) and Song_Srotersletter and Zilibotti (Growing Like China, AER 2011). You can also look at a?Growing like Chinaa? and a?Misallocation and Manufacturing TFP in China and India.a?And you need to find some other more as well.

The literature will be normally used to show that why I want to do the data analysis by reviewing these them. When doing this part, keep the argument in mind all the time. Please use your own word ( no Plagiarism) and pay attention to the structure to make the whole review logical and coherent. If you have better ideas or questions of doing the review, just let me know and we can discuss more.