Spatial Difference Of Jiangsu Development Finance

Difference and diversity is the sources of power. No matter anything, any population, their difference is the truth itself. Finance is the core of modern economy, differences in financial development has always been a theoretical and practical topics of community concern, despite the financial development level of Jiangsu Province is the leader in the nation, it also exists financial development differences in the areas of three major regions, the prefecture-level cities and county-level cities. Space is one of the reasons affect the differences in financial development, but it is not the only deciding factor. Many important international financial centers in the world have a very good location, which located in the large economies of the transportation hub and commercial centre, with convenient traffic conditions, such as New York and London. But not all regions with a good location can be developed into an international financial centre. Difference of financial development in Jiangsu Province is a miniature and typical example of the China’s regional economic and financial development differences. Studies on the spatial difference of financial development in Jiangsu have an important significance on narrowing the gap in different districts, making financial development policies and maintaining the healthy economic running. In particular, this article is divided into six parts:The first part is introduction. The article first introduced the theoretical and realistic background of spatial difference of financial development in Jiangsu, redefining the connotation of financial development and draws a few qualitative conclusions on differences in financial development. Financial development is a change process which from small to large in financial scale, from simple to complex in financial structure, from low-level to high-level in financial system, from old to new in financial functions. Financial development differences contains financial scale differences, financial structure differences, financial system differences and financial functions differences and summarized on the related articles of financial development differences. To analysis financial development differences needs more discipline perspectives, this article explains the research using of different discipline of theory and method in financial development differences. The development economics of "development pole" theory,"cumulative causation model","unbalance growth" theory and "core-periphery" theory, can used to analysis the financial development pole, unbalance in the financial development process, the "cycle accumulated" in financial development process. While using the financial geography to analysis the financial development, we can only simply consider of the geographic location factors, but also consider the effect on social economic, culture, system. Focus more attention on spatial interaction of financial development. Evolution economics can provide some basic methods and stress the inevitability of differences. Using an important of concept biology, such as "ecological system","mutation","evolution","symbiosis" to analysis the diversity and symbiotic relationship of financial development, the system views of financial development, and analysis financial support economic growth function in the angle from financial self-organization. The new economy geography pay more important on mechanism of financial agglomeration and proliferation and can research the micro-basis of the financial development difference. Finally, describe the main contents, technical routes and innovative ideas of the article.The paper systematically describe Jiangsu’s spatial difference of financial development from the second part to the fifth part. First of all, is the second part, statistically describing the spatial difference of financial development in Jiangsu, make research on difference of financial development and the dynamic changes in Jiangsu Province, and adopt static analysis and dynamic analysis methods. Static analysis mainly make comparison on Jiangsu’s current financial development differences in the perspectives of financial development scale and structure. It is divided into three parts:we can know that the financial development level of Jiangsu Province in the year2011is on the top of the whole nation from the comparisons of Jiangsu financial development status among the other provinces around. The second is through the comparison of three large regions’ financial development in Jiangsu, the financial development scale level in south of Jiangsu is higher than middle and north of Jiangsu. But part financial development growth level is north higher than middle and south; third, through comparison of thirteen prefecture-cities financial development in Jiangsu, it can be found that Suzhou had passed Nanjing in recent years in variable financial development, Nantong had surpass Yangzhou and Taizhou, Suqian is always the last one in Jiangsu; dynamic analysis mainly make empirical research about Jiangsu financial development differences through coefficient variable and Theil index, and got two conclusions:first, there are different features among variation coefficient and Theil index, decomposition effect of Theil index is better than that of coefficient variation.In Theil index, we can found total differences of deposits, loans, deposits and loans, per capita deposits, per capita loans, per capita deposits and loans and FIR are decided by regional differences, that is, the change direction is almost the same with total differences; but talking about contribution rate to total differences, TWR is decreasing, while TBR is rising. Second, it is the first time to mention dynamic changes of financial development differences characterizing stage features. From year2001to2004,the areas which have location advantages develop export-oriented economic early and better, the financial development differences increased in Jiangsu; from year2004to2006,with the implementation of development policy and making advantages to development export-oriented economic in northern Jiangsu, the financial development differences had reduced; from year2006to2009,because of the real estate investment and stock market, more financial resources are flowing and converging to the South Jiangsu which result increasing stage in financial development differences; from year2009to2011,affected by the United States subprime crisis and the lasting effects of financial crisis, the external demands were severely decrease in Jiangsu, southern part of Jiangsu was affected most, and the middle and northern part were relatively less. The financial development difference were reduced. In General, the difference of financial development in Jiangsu Province have the features charactering increase-decrease-increase-decrease.Statistical description of the spatial difference of financial development is a reflect of prefecture-level city financial competition. The third part of the essay compared the overall financial competition of Jiangsu, it can analysis the factors influencing financial development differences more specifically. Taking into account of the external factors affecting financial development and the financial development itself to build the financial competition index system in terms of financial development differences. This article created financial integrated competition four force model on the reference of Porter’s five force model, that is, location is financial development space; economic is financial development base; system is financial development environment; finance itself is financial development core. According to those above, financial integrated competition indicators system was build. The financial integrated competition forces can be set into four points forces on the bases of NI Pengfei’s city competition model. We use L stands location force, E for economic force, S for system force, F for financial force, financial integrated competition FC can equals to FC=f(L,E,S,F),that is LESF model. Each variable is the mean of three years from2009to2011and make factor analysis and cluster analysis on four component forces, then again make factor analysis and cluster analysis about the four component forces score. Judging from the empirical results, the unbalanced financial development exists in Jiangsu. Nanjing and Suzhou are better compared with the other cities in northern and southern part of Jiangsu. Each component forces have strong correlation with comprehensive financial competition, combined with the status of Jiangsu’s economic development, explain the regional financial development difference of Jiangsu in terms of geographical, economic, institutional and other aspects:first, location is important, but it is not the deciding factor. Nanjing owns a better location than Suzhou, but its economic and systems forces are inferior to Suzhou, so do the overall financial competition. From this perspective, only has a geographical advantage is not enough. Second, the economy is of vital importance to financial development basis. It is quite clear that the southern, middle and northern Jiangsu have strict location and relationship with overall financial competition in clustering economic analysis. Third, the system cannot be ignored. Although system has less connection with overall financial competition, its role of the economic and financial development cannot be ignored. Because of good system design on the road to develop export-oriented economy in south Jiangsu, coupled with government promotion it had promoted the concentration of export-oriented economy and accelerated the concentration of financial resources. Therefore, it needed the cooperation of geography economy, institution, and finance for the financial development.It is a static aspect to study on the comprehensive finance competition of regional which effects location, economy and system in financial development differences. In order better to reflect effects of geographical, economic, systems on the differences in financial development, part IV of the paper adopt the data Jiangsu in Annual Statistical Yearbook from year2003to2012,and make space measuring factors on the factors affect financial gathering in Jiangsu. On the bases of four force model, it build financial agglomeration of robot model:this article believes that location select of financial, flows changes of financial capitals, entrance and exit of financial system resources had constitute financial system space agglomeration forms (robot body),and agglomeration power (robot head) mainly affected by location, economic open situation (robot two hands)and system (national policy and local government competition, as robot two feet).Location factors selected distance far away from Shanghai(AFSH),location technology level (PL or SP), economic factors selected total GDP and actual uses foreign amount (UOFC),system factors selected government financial expenditures (GE),first rise theory assumptions on factors affect financial agglomeration and then build empirical model, introduced space factors and make space measurement on Jiangsu financial agglomeration effect factors. In Jiangsu thirteen prefecture-level cities financial agglomeration measurement, we found that government role, technology level, open degree are the main forces influenced financial agglomeration which presented different features in different periods. In space measurement among sixty-four cities, government expenditures and distance away from Shanghai affect financial agglomeration most; better than the results of prefecture-level cities analysis, one of the reasons is there are plenty samples in cities and counties, the other is Newton’s gravity model, space effect is inversely proportional with distance, and the distances between cities and counties are less than the distance between the cities, so results are more good than cities. Therefore, this article considers it can more refined in research areas while studying financial agglomeration space measurements.Generally speaking, through research we can found:in the terms of location factors, the explanation of Jiangsu financial resources agglomeration has always strong about distance away from Shanghai (AFSH),the location technology level patent authorized number (PL)has less effect on financial resources, but technologists number (SP) is become a good explanation; in the terms of economic factors, before the year2008,domestic production GDP had much influences on financial agglomeration, after the year2007,the actual uses foreign amount (UOFC) on financial agglomeration is very strong, which contract with the GDP to DL; in the terms of system factors, government expenditures (GE) affects a lot on financial agglomeration in Jiangsu, not only in thirteen prefecture-level cities but also in sixty-four counties. The government expenditures reflect government power. The government role is of vital importance in the reality of the current economic and financial development in Jiangsu. The research on the financial development differences is dynamic aspects in this chapter, and takes into account the spatial interaction in various regions.Financial agglomeration strengthened financial development difference, that is, financial polarization process and will produce radiation effects, so the part V talks about financial development pole and its radiation in Jiangsu and study how to eliminate financial differences through spatial interaction. This chapter first introduce the basic theory and methods of radiation, then uses the results of financial comprehensive competition analysis in Jiangsu city to identify financial development pole areas, introduced Wilson models in economic geography to estimate the financial radiation center, draw a radiation map, make research on radioactive forcing of Jiangsu financial growth pole.Studies found that although financial development level of Suzhou and Nanjing is good, but their radiations can not cover most parts of the northern Jiangsu, adopt the same way to make researches on the twelve regions which regard Suzhou and Wuxi as a one part, eight prefecture-level cities of middle and northern Jiangsu, five prefecture-level cities of southern Jiangsu, we found that radiation force of Suzhou and Wuxi is much better than before, but still not strong enough; Nantong, middle of Jiangsu and Xuzhou, northern Jiangsu, limited in radiation capacity. Xuzhou’s financial radiation force had enhanced after it across district of limit, and put into research of four provinces. So when talks about Jiangsu financial radiation force, it is weak in two aspects, when the6is stable:one is financial energy is limited, that is financial development level of Jiangsu had not accumulated to a certain degree and radiation source energy relatively low, the second is radiation resistance forces β is large, not only the resistance forces come from space distance, but also from aspects of the open degree, economic, and policy environment; facing this situation, in this chapter, it proposed the methods to enhance financial radiation force in Jiangsu:one is to improve the radiation energy, the other is to reduce the radiation resistance. It is the effective way to promote financial radiation by creating the regional financial centre and financial agglomeration district, strengthening the linkage between areas. Of course the studies on financial radiation cannot limited in a particular administrative areas, it need switch administrative regions to economic zone, especially pay more attention to the areas along the provincial border in practical application of research, and Xuzhou is a good example. It is a relative concept of financial radiation, a region weak in Jiangsu radioactive force may be strong in areas along the provincial border, based on this, it can be taken into account to establishing cross-district financial centers or the financial agglomeration districts to stimulate economic and financial development of the surrounding areas.Above parts researched on perspective of financial scale, structure, system in Jiangsu financial development differences, lack of discussion about financial function differences, the VI part talk about the function of financial development on economic growth, and analysis economic growth differences of thirteen prefecture cities in Jiangsu, although it not covers all financial function, but it is supplementary to several part research before. First make reviews on the theory of financial development and economic growth, and explain the interaction mechanisms between financial development and economic growth on the basis of this, and finally make empirical research based on thirteen prefecture-level cities one by one. There was little effects of financial factors on Nanjing, Yangzhou, Xuzhou and Yancheng’s economic growth, it needs to find other factors that drive economic growth, In actual research we found:there were similar situations in Jiangsu prefecture-cities eliminated financial variable, Suzhou and Huaian are the same group, as well as Wuxi and Xuzhou; Changzhou and Yancheng. The reasons for this is the cities were cooperated more than10years ago, especially in Suzhou and Suqian. That is to show the mutual cooperations between them are key points in promoting economic growth, the cooperation and support in this process should not be ignored; the other is Nanjing and Yangzhou’s economy growth were influenced by fixed asset investments (FAI),the economic growth and budgetary expenditure (EE) were positively associated while negatively with budget revenues (EI) in Xuzhou and Yancheng. That is, fixed asset investments and government interventions are also the important factors in financial growth. All in all, financial variables are not remarkable in these four prefecture-level cities. It is wrong to consider that financial development had little effects on local economic growth. Because the indicator chosen in this article is indirect financing, no taking into account of the direct financing of prefecture-level cities; the second is not make full use of the financial system functions. Only enhance financial self-organization, financial system functions can better promoting economic growth.It is inevitable for the difference exist in financial development and technology, society, culture. It is unrealistic to pursue unbalanced financial development. But if the gap is too large to causing polarization, it will restrict the construction of regional economic integration, as well as cause serious social problems. As for the areas in Jiangsu, it is necessary to realized the internal coordination of finance, geography, economy, institution, as well as active interactions with other areas can improving financial development efficiency.