Research On The Construction Of Financial Center In The Northeast Region

As the engine of national economy, the regional financial center is the hub to control theoperation and allocation of global resources, assets and capitals. The construction anddevelopment of financial centers have been an important approach of China to adjust its economicstructure, transform its growth pattern and achieve the sustainable economic development indifferent regions and the international financial centers of multi-layered pattern have taken shapein the world. So the study about construction of regional financial center in the northeast of Chinaholds great significance on both theoretical and practical researches.On the basis of related theories of spacial financial center in the prospective of the financialgeography, the feasibility of establishing a regional financial center at northeast China is firstlyanalyzed comprehensively in this paper; secondly the paper makes an empirical analysis on thecorrelation/necessity of financial development and economic growth, after which an empiricalanalysis is also conducted in the paper on the regional financial geography, which concludes thatNortheast China is qualified for establishing a regional financial center, and the financialdevelopment and the economic growth in the region can be reciprocally promoted and Dalian isselected to be the ideal city in Northeast China to establish the regional financial center. Finally,the paper puts forward the development pattern and strategy of the regional financial center inDalian by referring to the development patterns of significant financial centers at home and abroad.In this paper, the research contents and innovations are as follows:First of all, the conditions for regional financial center construction in northeast China areanalyzed by using statistical method. The three provinces in northeast China cover an area of790,000km2, accounting for8.3%of the total area of China. The three provinces in NortheastChina enjoy location advantages as they are located at the center of Northeast Asia, bordering onRussia, Mongolia and North Korea and adjacent to Japan and South Korea. Meanwhile, NortheastChina is a region with a huge potential of late-mover advantages as there are huge stock assets,sound industrial base, remarkable scientific and educational advantages. In2011, the GDP of theNortheast China reached RMB4537.767billion, accounting for9.6%of the total in China,increased by12.6%over that in the same period of the previous year, higher than the nationalaverage growth speed of9.2%. Secondly, this paper conducted an empirical analysis on the necessity of regional financialcenter construction in Northeast China as well as the correlation of financial development andeconomic growth by selecting five economic and financial indicators, these factors include theEconomic growth,the Financial Interrelations Ratio (FIR indicator), the Financial efficiencyindicator,the Depth of the Financial indicators and Fixed Assets Investment (FAI indicator).Andthose analyses show that there are long-term equilibrium relations between the FinancialInterrelations Ratio, Fixed Assets Investment, the financial efficiency indicator and the economicgrowth, which has a mutual promoting effect. It can be seen from the result that economic growthand financial development are promoting reciprocally to each other’s development in NortheastChina and the establishment of a regional financial center in Northeast China will promote thefinancial and economic growth there.Thirdly, by using factor analysis and clustering methodology, this paper conducted anempirical analysis on the competiveness of Shenyang, Dalian, Changchun and Harbin in NortheastChina. Also, the regional financial geography indicator system for the financial center in NortheastChina has been established, which includes five Class-I indicators,22Class-II indicators and78Class-III indicators. As regards the results of analysis, Dalian obtained the highest scores in4Class-I indicators of financial sector performance, financial institute strength, regional economicsustainability and the financial ecological environment.Finally, the formation and function development patterns for developing Dalian into theregional financial center in Northeast China have been put forward in the paper based on the statusquo of the financial industry and comparative advantages of the city by referring to thedevelopment pattern and experience of financial centers in China and developed countries, and atlast, the development strategy and supporting measures have been proposed to develop Dalian intothe regional financial center in Northeast China.