Research On Institutional Circumstance Of Forming A Financial Center

With the rapid development of economic globalization, financial center has become an important indicator for measuring a country's comprehensive economic strength, and also a country's international competence starts to depend on owning a powerful financial center. Nowadays, our country is up to transform from planned economy to market economy, so it is necessary for our country to build varied financial centers. By way of scale benefit and gathering radiation effect of financial center, the economy of our country can increase fast and steadily. Meanwhile, the struggle of wanting to be a financial center is much more fiercely. Wherefore, according to new institutional economics'relative theory, this paper intends to study the forming of financial center from institutional circumstance aspect. First, through cases of financial center, it concludes that there are five chief factors of institutional circumstance, namely, economic factor, financial factor, legal factor, governmental factor and credit culture factor. As to analyze deeply, it builds indicative system of institutional circumstance via five first-class indicators and fourteen second-class indicators, and manages to make institutional circumstance specific. Then analytic hierarchy process is used to figure out each weight of indicators in institutional circumstance system, and arrives at a conclusion that economic factor and governmental factor occupy the largest weight in the indicator system. Consequently, taking Tianjin city for example and regarding Shanghai city's institutional circumstance as reference standard, by this way we can find out the institutional circumstance's comparative distance between Tianjin and Shanghai. As a result, this paper provides five countermeasures for Tianjin so as to improve the situation of institutional circumstance and Tianjin will benefit from that improvement. Besides, the research on the institutional circumstance will be useful and meaningful for other cities to establish the financial center.