Financial Support Affect The Revitalization Of The Central Soviet Area(Gannan)

June28,2012,?State Council on Support the Gannan and Other Former Central Soviet Area Revitalization and Development of a Number of Opinions?"(hereinafter referred to as the" Opinions ") formally introduced. Among the "opinions" on the strategic positioning of Gannan former Central Soviet Area:characteristics of agricultural products deep processing base and advanced manufacturing base, China rare metal industry base, Chinese revolutionary base areas poverty alleviation demonstration area, the country south barrier's most important ecological areas, an important regional transportation hub, the red cultural heritage innovation Zone. Overall in the past, the Central Soviet Area (Gannan) has made a certain development of the Central Soviet Area (Gannan), however, the problems and contradictions have become increasingly prominent in the proportion of the country's total economic output is still very small, and developed provinces and regions still exist a considerable gap between the relatively slow pace of development, income also unsatisfactory. However, as the protagonist of "opinions"-Gannan, before the Central Revolutionary Base, is about to change the original relatively slow, lagging state because of policy support.Firstly, this paper review and comments the theoretical literature on financial support for regional economic development, followed by making a theoretical basis for the empirical analysis of the text, analyzing the financial support to promote regional economic development mechanism.Among them, the financial support for the economic development of the mechanism is analyzed from both macro and micro perspectives. In the micro level, the financial system has five basic functions:risk management%information revealing?corporate governance?savings transaction and convenience to transaction function.Financial support by influencing the play of these five functions to achieve the goal of increasing capital accumulation?raising funds efficiency and promoting technical progress, thus promoting economic development?In the macro level, financial support by directing money deepen?improving financing structure, promoting the flow of factors and promoting capital formation, thus promoting economic development.Based on the theoretical analysis of the mechanism of financial support and regional economic development, this paper uses data envelopment analysis (DEA) from the perspective of input and output efficiency to empirical analysis the condition of the Central Soviet Area (Gannan) economic development. Meanwhile, based on the Central Soviet Area (Gannan) data of from2001to2011, use principal component analysis of the SPSS to evaluate the Central Soviet Area (Gannan) financial support levels and trends. On this basis, the use of the Central Soviet Area (Gannan) selected sample of counties (cities) panel data, based on panel data unit root test, cointegration test and causal analysis test methods, exploring the Central Soviet Area (Gannan) internal dependencies and causal relationship of the financial support and the economic development, by building econometric models between financial support and economic development. The study draws the following conclusions:First, the sequence of first-order differential value of the financial support and economic development efficiency by examining the10%significance level, therefore, the Logarithmic sequence of the financial innovation and region economic development of the Central Soviet Area (Gannan) are first-order single whole sequence; Second, the financial innovation and economic development efficiency of the Central Soviet Area (Gannan) exists long-term cointegration relationship; Third, in the short term, the Central Soviet Area (Gannan) exists unidirectional causality from financial innovation to economic development efficiency, but in the long-term financial innovation and economic development efficiency have bidirectional causality. Finally, according to the actual situation in Gannan region, proposing targeted path and programs of the financial support. The paper made proposals mainly from four aspects of reform and development for financial support to the Central Soviet Area (Gannan) areas:first, implement tilt credit policy; second, implement differential regulatory policies; third, Perfect the system of banking institutions; fourth, Standardize and develop the informal financial enterprises.In summary, financial support and economic development in the Central Soviet Area (Gannan) that exists the interaction mechanism, there is a strong correlation. Empirical analysis of the data of the Central Soviet Area Gannan, found that a low degree of Gannan region's financial markets, financial deepening slowly. Therefore, the only way is to promote the constant financial support?the financial markets, in order to form the Gannan region financial support and economic development of the Central Soviet Area (Gannan) a virtuous circle of economic development, to be able for the Central Soviet Area Gannan revitalization.