Research On The Impact Of Financial Availability On High-Quality Economic Development

Since the reform and opening-up,Chinese economic growth has achieved a remarkable achievement and is called the ‘Chinese miracle’.The 19 th National Congress of the Communist Party of China made a major judgment in the new era of socialism with Chinese characteristics,which illustrated Chinese economy has shifted from a high-speed growth phase to a high-quality development phase.Furthermore,in order to better promote the high-quality development of Chinese economy,the practical and theoretical circles have carried out plenty of explorations and researches.This article closely follows the content of the party ’s 19 th National Congress and the National Financial Work Conference.The financial availability of Chinese financial system will be discussed as a breakthrough,which influence the high-quality development of the economy.This article also Follows the analysis path of theoretical analysis-statistical statistics-positive research-policy recommendation.Then proceed from the aspects of real economy investment efficiency improvement,consumption upgrading,rural-urban income gap,poverty alleviation,and green economy efficiency,the interaction and influence path between financial availability and high-quality economic development is then studied empirically.This paper contains five main sectors.In the first sector,the connotation and extension of financial availability will be defined,and then a statistical investigation of the evolution and trends of China’s financial system will be conducted.After that,the research found that financial availability depends on three main elements,they are the ability of economic entities to obtain appropriate financial services,the ability of the financial system to provide different levels of financial services and the level of financial infrastructure.Besides,this article also reflects that the evolution of China’s financial development is mainly reflected in five different time periods,each period shows great differences.In the second sector,an evaluation index system for financial ava ilability including banking,securities,insurance and other financial industries from four dimensions of supply,demand,using effect and affordability of financial services,will be constructed to measure the financial availability levels of 31 provinces in China during 2007 to 2017.On this basis,the regional differences and spatial convergence characteristics of financial availability in the analysis are analyzed,which provides the data support for subsequent financial availability to study the high-quality development of Chinese economy.On the one hand,the results show that,from a national perspective,Chinese overall financial availability score is 0.1249,which means there is enough room for improvement.On the other hand,in terms of regions,the financial availability of the eastern(0.2484),northeast(0.1253),central(0.1216),and western(0.1189)declines in turn,which in consistent to the regional characteristics of economic development.In addition,the convergence results illustrate that the gap in financial availability in different regions is gradually expanding with time,but after controlling other influencing factors,the financial availability of each region will gradually converge to their respective steady-state levels.In the third sector,a theoretical model including the three sectors of family,business and finance will be constructed and explores the convergence path of a country’s economy to a higher quality in the state of full availability of finance.Mathematical derivation results show that an increase in the level of financial availability will promote an increase in innovation investment,which in turn will increase a country’s production efficiency,and ultimately promote high-quality economic development.Drawing on existing research results,according to the party ’s19th National Congress report’s in-depth explanation of high-quality economic development,measuring high-quality economic development from the five aspects:real economy investment efficiency,consumption upgrade,urban-rural income gap,poverty alleviation,and green economic efficiency.Based on this,empirical research on the impact of financial availability on different dimensions of economic quality is done.Further elaborating the transmission path o f financial availability affecting high-quality economic development,it is found that financial availability mainly activates market vitality by reducing the difficulty for microeconomic entities to obtain financial resources,thereby promoting high-quality economic development.Then,by using the sample data of China ’s 31 provinces from 2007 to 2017,the impact of financial availability on the economic quality of the real economy,such as efficiency gains in the real economy,consumption upgrades,urban-rural income gap,poverty alleviation,and green economy efficiency will be studied.The high quality development of the economy is used to further study the interaction and impact path between financial availability and economic quality.The results firstly show that the increase in the level of financial availability contributes to the efficiency of investment in the real economy.More specifically,from a regional perspective,due to the availability of financial resources,there is a difference in the imp rovement of the efficiency of the investment in the real economy and the impact of the growth of the central,eastern,northeastern and western areas shows a decreasing trend.From the perspective of the impact path,financial availability promotes the eff iciency of the real economy investment by improving the level of corporate risk-taking.Secondly,the increase in financial availability has a significant positive effect on the consumption upgrade of Chinese residents.In details,from a regional perspect ive,the effects of the eastern and central regions are more significant,while the effects of the western and northeastern regions are not significant.Thirdly,the increase in financial availability has a significant positive effect on the increase of fa rmers’ income,it also has a significantly promotion to the income of urban residents and has a significant inhibitory effect on the income gap between urban and rural residents.Fourthly,an increased financial availability contributes to the easing of po verty,which is achieved by increasing credit demand and economic opportunities.Fifthly,there is a one-way causal relationship between financial availability and green economy efficiency,and green economy efficiency has a significant positive impact on the impact from financial availability.Finally,based on the research conclusions of this paper,also combined with the current situation of Chinese economic development,policy recommendations will be proposed to promote the high-quality development of Chinese economy from the perspective of financial availability.