A Study On Regional Finance Coordination Mechanism In China

Finance plays a very important role in economic growth. Regional fincnce is a key factor of regional economic development. However, regional finance is discordant with the real economy because of its scarcity and some restrictions from regional development program, different parties objective functions, financial regulation policies and so on. It is significant to study how to solve the problem of regional finance discordance for regional economic development. Now china is in a critical stage in which economic system reform is comprehensively deepened and transformation of economic development pattern is accelerated. To continue to implement regional development total strategy and to promote balanced development among regions was proposed at 18th Party Congress. The construction of efficient regional finance coordination mechanism is critical to the above-mentioned objectives. Facing the new situation, the related theory needs to be improved.Province-level administrative regions in china was divided according to economic and cultural development, natural condition, history states and so on. Meanwhile, province-level administrative regions, including government agencies, regulators, financial institution and actual industries,was significant for the national economic development. So, the dissertation focused on the relationship among regional finance participants and tried to construct the framework of regional finance coordination development mechanism.Based on the domestic and oversea research results and the description of development status and discordance of regional finance in china, the author made an empirical test of regional finance discordance using econometric approach from micro and macro level. Then the author analysized the underlying reasons that caused regional finance discordance using game theory. Combined with the international coordination experience,the author put forward the construction proposal of regional finance coordination mechanism, including regional finance coordination committee as sole coordination subject, coordinating the relationship between local government and regional finance regulators as coordination objective and four working groups composed of organization safeguards working team, revenue equalization working team, risk warning working team and conflict mediation working team.