Research On Financial Structural Transformation In West China

In order to boost the development of its west areas, the Chinese government put forward the strategic plan of Western Development that demands a large amount of capital support. So, the state must implement a special financial policy to facilitate the transformation of financial structure in these areas. The structural change will perfect the function of west financial system, raise more fund for western development, provide better financial service and also speed up the pace of Chinese financial integration into the world financial system.The west are poverty-stricken areas in China, where are characterized by low economic growth, single financial structure, low income per capita, natural environment deterioration yet abundant natural resources. It is of great worth for the research of how to establish modern financial structural system and provide better financial service for western economic development. This dissertation systematically analyzes the influence on economic development of finance, the definition and functions of financial structure and uses the experiences and practices of financial structural transition in both developed and developing countries for reference. Based on the empirical study of western financial structure in China, the author argues that the west areas should establish a financial structure pattern of market openness. The article elaborates on the western banking system, financial market system and the structural system of rural financial establishments. The author lastly comes up with regional financial policy needed by western financial structural transformation for the reference of financial authorities concerned.This dissertation consists of an introduction and seven chapters of main content. They go as follows.Chapter 1. IntroductionThis chapter focuses on the following aspects: the background of topic selection, intention and significance of the research; summary of the theories, practices and overall comments on financial development both home and abroad; brief introduction of situations in west China; the train of thought and research methodologies and some areasof possible innovations.Chapter 2. Influence on economic development of finance and definition of financial structureThree theories concerning effect on economic growth of finance deserve mentioning, namely theories on financial structure, financial repression and financial deepening. This chapter elaborates on function of finance from the theory of financial repression and deepening, financial structure theory, etc. it expounds the definition and function of financial structure, especially those of financial institutions, financial instruments and financial market. The above mentioned are the rationale of the dissertation.Chapter 3. General description and comments of financial structure abroadThis chapter mainly deals with the financial structure practices in U.S, Germany and Japan. The author analyzes the financial supporting policies and systems toward underdeveloped areas in U.S and Japan; summarizes the two financial structure models prevailing in U.S & England VS Japan & Germany and analyzes the causes and lessons of Asian financial crisis in terms of financial structure. The author concluded that the stability of financial structure transition during financial reform is vital to developing or underdeveloped nations. It is not only adjustments of financial structure itself but also must be based on the economic structure adjustment as a whole.Chapter 4. The evolution of financial structure in west China and its developmental patternThis chapter analyzes the manifestation of regional disequlibrium of financial structure. Since 1979, Chinese financial structure has been transitioning from government-oriented to market-oriented. The efficiency of financial structure is improving and the financial institutions are becoming diversiform in ownership. But the west areas are lagging behind of their coastal counterparts and the gap is broadening, where the financial establishments...