Study On The Evolution Theory Of Inland International Financial Centers And It’s Application

The relevant theoretical issues of the international financial center is a long-standing problem, since 1970s, has formed a number of genres. However, the problems exposed in the practice of financial center construction indicate that some theoretical problems related to the construction of the international financial center have not been deeply understood, yet to be further studied. Further research should focus the theoretical issues related to the construction of inland international financial centers, why an inland international financial center exist, and what the law of its development and evolution is. This paper attempts to solve the above problems, and the practice of construction related research conclusions used in the border of Kunming international financial center.In addition to the introduction and conclusion, the main body of this paper consists of five chapters. The second chapter is the theoretical basis of the research of inland international financial center. The third chapter is the historical investigation and case study of the inland international financial center. The fourth chapter is the analysis of the evolution mechanism of inland international financial center. The fifth chapter is the empirical test of the evolution of the inland international financial center. The sixth chapter is the enlightenment to the construction of Kunming international financial center.Through the investigation of the history of the international financial center and the case of the inland international financial center, this paper finds out the following results:first, compared with individual country’s economic growth and economic strength, the regional economy has a relatively stronger explanatory power to the formation and development of the international financial center; second, harbor and time zone has a certain explanatory power, but not the decisive influence factors; third, Infrastructure and systems have a decisive impact on the formation and development of the international financial center, but it is not enough to explain the formation and development of the international financial center; forth, the impact of the war on international financial center is more complex. The specific effects may be caused by the huge demand for capital in the international financial center, or damage the necessary infrastructure and institutional factors for the existence of an international financial center.Based on the findings of these studies and the theoretical basis of the second chapter, the fourth chapter establishes the regional theory of the evolution of the inland international financial center. The essence of finance is the financing of the capital, so the existence of the financial center must be derived from a set of potential funding requirements, which means only when the transaction costs are less than the net proceeds of the opportunity to get this opportunity will have a financial center. At present, the construction of infrastructure and institutional framework is the fixed transaction costs of building an international financial center. Once the fixed transaction costs occur, the degree of financial institutions and financial transactions will be determined by the transaction’s marginal revenue, marginal cost of capital and marginal variable transaction costs, in accordance with Neo-classical economic theory. For inland financial centers, the potential financial supply depends on the sub optimal capital gains. And the potential demand for funds comes from the rapid economic growth of their own or neighboring countries or regions. The mechanism of the evolution of the inland international financial center is that the regional economic growth has led to the development of the international financial center of the opportunity rent, which led to the inland city to competition each other for the opportunity rent. The origin and evolution of the inland international financial center is determined by the change of opportunity set, the fixed transaction cost and the variable transaction cost. All the factors affecting the above three variables will affect the international financial center.The fifth chapter of this paper shows the empirical research on the evolution of the inland international financial center, and the result indicates that regional economic growth rate has a significant positive impact on the degree of importance of the inland international financial center, and constitute the cause of Grainger. This conclusion is consistent with the theoretical analysis in the fourth chapter. So it can be considered that the inland type of international financial center in this paper has strong explanatory power.Based on the inland type international financial center of the region, in the sixth chapter, border areas in Kunming international financial center construction practice were studied. Studies suggest that large long-term capital needs exist in the sub region of two provinces (autonomous regions) in Vietnam, Laos, Burma, Kampuchea, Thailand and Yunnan, and Guangxi provinces (autonomous regions). And the transportation network has been basically formed among these regions, and is being further upgraded. As the same time, the political stability of these countries and the stronger growing willingness to development promote the regional international financial center producing. Although Kunming and Nanning have its own advantage, but is at a clear disadvantage for Bangkok. In order to achieve the goal of building an international financial center, Kunming can adopt the following measures:First, taking measures to effectively promote the development of regional economy. Second, making full use of and expand the geographical advantages, the establishment of multi-level cross-border exchange system. Third, active using of domestic regional international financial center network. Forth, Reasonable positioning, and paying close attention to the development of Bangkok International Financial Center. Fifth, improving urban financial ecological environment.The main theoretical contributions of this paper are two points:First, regional economic factors are found to be stronger than that of the financial center, which has a stronger explanatory power to the evolution of the inland international financial center. Second, the panel data is used to test the theory of inland international financial center.