Research On The Regional Differences In The Distribution Of Financial Resources In China

The realities that Economic characteristics of great power and differences of the socio-economic development impacts of elements included the complexity of human geography result in the regional differences in Chinese economic and financial development are inevitable. Keeping an appropriate gap is the reality as well as the objective requirements for economic development. However, Differences in regional distribution of financial resources have become much higher than the ones in economic development and even tend to grow, which has become a serious threat to China's sustainable economic growth. Coordinating the growing differences among areas as well as trading-off between fairness and efficiency has become the key point in ensuring the sustainable development of China's economic in future.Based on Theory of financial resources and regional financial theory, this paper empirically tested the relationship between economic growth in the region and area distribution of financial resources, confirmed the interaction mechanism between development of financial resources and economic growth, and examined the impact of differences in regional distribution of financial resources upon the regional economic non-balanced growth, revealed that differences in the regional distribution of financial resources is not only a reason for the difference in regional economic development, but also the reality of the consequences of differences in regional economic development. On this basis, through the study of statistical data from 1992 to 2007 ,from the whole country's difference, "eastern, middle and western" differences and "inter-provincial" difference of "three-dimensional perspective", the characteristics and evolution of China regional financial resources differences of deposit and loans resources, equity financing, insurance premium income, the actual utilization of foreign capital, financial institutions etc. are depicted. Furthermore the mechanism and influence factors of distribution of regional financial resources differences are demonstrated. These evidences of evolution proved that the trend of expanding differences of China regional financial resource differences results from the dual role of "government failure" and "market failure" and revealed the nature of distribution differences of China regional financial resource is an gradual evolution process of Institutional Change from central government-oriented to local government-oriented to market-oriented. In the final part, from the points of appropriate difference and coordinated development of regional financial resources, the relative policy suggestions of control means and coordinate development are provided for China regional financial resource differences.The main conclusions are:i there is a significant interaction between financial resources and economic growth. Differences in geographical distribution of financial resources are the main reason of unbalanced regional economic growth, is also the result of differences in regional economic development.ii the comprehensive statistical analysis of distribution by region and industry of China's core financial resources showed that, from1992 to 2007, the Chinese financial resources in various regions and industries show a general growth. But because of the different growth rate in various regions, the differences in the distribution of financial resources were getting growing. At present, the differences are in the trend of accelerated expansion.iii Studies on trends of evolution of China's financial resources in different areas have shown that, from 1978 to 2007, inter-provincial differences in regional distribution show changes in the overall shape of U. the differences in regional distribution had the trend of growing in eastern, central and western.iv Initial conditions, the market mechanism, the role of government, the financial ecology and economic development level combined effect the geographical distribution of financial resources. Among them, differences in level of the role of market-oriented and the role of government-led led to staging evolution of shape- U.v "Market failure" and "government failure" are the underlying causes of acceleration expansion of geographical distribution of financial resources. Under the dual role of a vicious circle, the path to achieve a breakthrough with the paradigm in regional differences is that organic integration between government-led "from outside" and market-assisted "from inside ".Finally, to alleviate the expansion of distribution of China regional financial resources, the specific design of control programs are: First, to pay full attention to the institutional factors' effects on regional distribution of financial resources. To emphasize the balances of all levels of government power, gradually to release informal finance, to build a dynamic and coordinated development mechanisms for regional financial; secondly, to implement the different regional monetary policy and fiscal policy, to reduce external factor of geographical distribution of financial resources; Third, to focus on the development of internal financing, to culture "own blood mechanism", the government at all levels should make greater efforts to promote comprehensive reform of education investment system, and improve the regional innovation incentives system, and optimize the regional financial ecological environment, reduce inter-regional differences in educational level.