A Study On The Differences Of China’s Regional Financing Capability And Its Influencing Factors

One of the significance of financial development theory is to look for financial reasons for backward countries or regions.There are countless literature to study the regional financial development gap and economic development gap.Financing is one of the important connotations of finance,thus the difference of financing capability is an important manifestation of regional financial development differences.In the first chapter,based on the historical background of the long-term differences in the regional economic development,this paper puts forward the research ideas,research framework,research methods,possible innovation points and shortcomings on the basis of summarizing the research literature.The second chapter reviews the classical literature on the relationship between financial development and economic growth,financing and economic growth.Based on the existing research results,this paper analyzes the relationship between the financing and fixed assets investment and the relationship between capital stock and the per capita GDP to prove the huge promotion effect of financing on economic growth.Beginning from the ability of human beings,we firstly dicuss regional ability in chapter 3.Secondly,this paper discusses the core of financing ability,which is divided into three levels(enterprise financing ability,industry or regional financing ability,macro state financing ability).Considering the availability of different financing methods and its proportion in the total financing in the whole society,credit financing,bond financing,stock financing and foreign direct investment are determined as the research objects of this paper.Based on the criticizing of research on the evaluation of domestic financing capability,and from the aspects of financing scale and financing costs,according to the relative importance of the four major financing methods,this paper construct the evaluation model of regional financing capability.The fourth chapter is the empirical analysis of regional financing capability differences.This paper makes a detailed analysis of the differences in credit financing,bond financing and stock financing in different regions from the aspects of financing scale and cost.The paper also analyzes the differences of foreign direct investment from the aspect of financing scale.It is concluded that both the scale of financing and the financing cost index,the eastern region is higher than other regions.But the differences of financing capability index between different regions are narrowing,showing the feature of convergence.The fifth chapter is the center of this paper;it analyzes the reasons causing the low financing capability in the central and western regions and northeast region from the aspects of the institution,economic structure and geographical location.In the eastern region,the local government’s policy support to the corporate finance is greater,the financial institutions are denser,and the transaction cost of financing is smaller.Furthermore,the level of urbanization in the eastern region is higher,the second and third industries account for a higher proportion,and large-scale financing activities are inherently related to cities and financing needs are mainly produced by the second and third industries.In addition,the eastern region has a superior geographical position,a long history of commercial tradition and close to the financial center.These factors together make the eastern region have a higher financing capability.The sixth chapter puts forward that the economically backward areas should obtain more policy support from the central government and local governments;standardize the behavior of enterprises and cultivate financial consciousness to improve the financing capability.Due to the inherent limitations of humanities and social sciences research,this paper does not consider the impact of private equity financing and trust financing and other financing methods on regional financing capability.When determining the financing cost index,it does not take into account the influence of the term structure on the financing cost.In addition to the factors mentioned in this paper,it is necessary to take into account more factors,such as the scale and profitability of micro financing subjects,industry growing speed,the central government’s strategic policies.