Regional Financial Research

Finance is one of the main motive forces of the modern market economy. It is not only supported by the analysis of factors that aid economic development in the West, but also proved by the experience of the world's modern economic development.Regional finance is the mid-scopic arrangement of the financial theory. The restrictive relationships between developments of regional finance and growths of regional economy make regional finance become the main factor of regional economic growth. Regional finance can be defined as the distribution state of the financial sources' structure and movement in countries and regions, like regional economy, it is objective phenomenon of the economic development in great nations under the condition of modern market economy. The development of finance obviously shows the regional characteristics. In addition, the accomplishment of regionally economic development relies on the regional movement of finance.With the development of society and economy, the ongoing trends of the widening economic differences among different regions have become a protrusive problem in China. Actually, China is one of those countries in which biggest economic differences were made among the regions. It is proved by the experiences that regional finance is impacting on the regional economy. Nowadays, the research on the regional finance is lagged behind the realities in either domestics or foreign countries because it just began. This article presents a thoroughly updated view of China's regional finance, because both of theory and reality have asked for conclusions.Five parts comprise the main body of this article.The first part theoretically defines finance development.Mckinnon and Shaw's theory of Financial Deepening shows up developing countries have the peculiarity and phase nature during their financial deepening.Since 1990s, economists have quoted the theory of internal cause of economy growth into the theory of financial developing, so that they can present thoroughly the interrelation between financial developing and economy growth, the concrete show of which on the region is the interrelation between the growth of regional financial and the development of regional economy.The second part aims to make clear the connotation of regional finance and regional financial growth.There are not only interrelations but also natural differences among the theory of regional finance, financial developing and regional economy. Regional finance has its own nature, which can be summarized in sense of gradation and differences of circumstance and attraction as well as radiation and so on. The circumstance of regional financial growth explains the background and origin of the difference of regional financial growth. At fact, it announces the mode that ho\v regional economy and regional finance act on each other. The important roll that capital plays in the process of regional economy developing is also presented i.i this section. Aimed to find out the reasons of why regional finance is lagged behind and try to find the solution, the author expounds the growth of regional finance by aspects of quantity and quality. It is the conclusion that investing more capital in certain regions embodies the expansion of the growth in sense of quantity; the growth reflects the improvement of the productive efficiency of product factor in sense of quality.The third part presents the contribution that finance makes on the economy growth.The contribution of finance shows through three aspects: firstly, it increases the amount of element that put in the production; secondly, it promotes the improvement of labor productivity; lastly, the advance of the output value of financial industry devotes directly to the economy growth. All of these are verified in the process of the financial reform in China.The fourth part analyses the capital flow among regions.The double Dualism of regional economy makes the imbalance of thedistribution of the demand and supply of the financial sources, whic...