Research On Comprehensive Evaluation Of Provincial Financial Competitiveness In China

With the acceleration of the process of global economic financialization,financial competition is becoming more and more global.When measuring the economic development and financial level of each country and region,the measurement index used is often called financial competitiveness,which is an important component of the comprehensive competitiveness of the province.Improving financial competitiveness is an important factor to realize the sustainable development of the province.Therefore,the evaluation and analysis of provincial financial competitiveness is of great practical significance.Firstly,this paper discusses the meaning of provincial financial competitiveness.According to the selection principle of the index system,combined with the connotation of financial competitiveness,from the perspective of overall scale,efficiency and ecological environment,the corresponding index is selected to build the evaluation index system of financial competitiveness.In this paper,the annual data of 31 provinces in 2018 are used as samples to evaluate the financial competitiveness of provinces in China.Using three kernel functions of the kernel principal component analysis method to calculate the comprehensive score of the competitiveness of the financial industry of 31 provinces,ranking the results of statistics,so as to get the current ranking of the financial competitiveness of provinces and their corresponding scores.The comprehensive evaluation results of nuclear principal component analysis are compared with those of principal component analysis.The conclusions are as follows:(1)the provincial competitiveness in China shows a trend of uneven development and high in the East and low in the West.(2)The competitiveness is related to the geographical location of the province,which is located in the coastal areas,and its competitiveness is often strong,such as beishangguang,Jiangsu,Shandong,Zhejiang,etc.,while the competitiveness of the western areas is weak,which is obviously lower than that of the coastal areas,such as Xinjiang,Qinghai,Tibet and other provinces,and the financial competitiveness gradually decreases from the east to the West.(3)In the process of dimensionality reduction of PCA,there is a lot of loss of sample information,and the results are difficult to explain well.Considering the nonlinear correlation between index variables,the evaluation results obtained by kernel PCA are more reliable andreasonable than those obtained by PCA.Finally,based on the analysis of the results of the comprehensive evaluation,the paper puts forward some policy suggestions to improve the regional financial competitiveness of China from the aspects of financial system,opening up and talent introduction.