An Empirical Study On Regional Comparison Of China's Financial Development Optimizing Capital Allocation Efficiency

In view of the regional economic gap continued to widen, this thesis attempts to analyze the reasons for forming the gap between the level of regional economic development from mechanism of financial development, not just from the relationship of the size and structure of the regional financial development indicators and GDP. Based on measuring the regional capital allocation efficiency by regression model, this thesis studies the correlation between regional economic disparities and regional capital allocation efficiency differences, and further, makes comparative study on differences of regional financial development optimizing regional capital allocation efficiency.According to the method of Jeffrey, using sensitivity of capital flows to capital gains of the industry to evaluate capital allocation efficiency, this thesis measures regional capital industry allocation efficiency for all provinces, with panel-data of 30 provinces in the past five years, more than 5,000 samples, and then analyzes difference in the regional capital industry allocation between various provinces. And through empirical study, regional differences of capital allocation efficiency indeed affect regional economic disparities in a certain extent.Reviewing of the relevant domestic and foreign literature, this thesis makes a systematic analysis and extraction of financial development mechanism, and analyzes optimizing effect of financial development to allocation of capital respectively from function of the financial intermediation and the stock market. Correspondingly, this thesis selects development of overall finance, development of financial intermediation and development of the stock market to make empirical analysis of the causes of regional disparities efficiency of the allocation of capital.Considering the large gap between the level of development of China's regional economy and finance, this thesis introduces regional dummy variables and interactive variables between explanatory variables and regional dummy variables to analyze the causes of regional disparities efficiency of the allocation of capital not only from countrywide but also three region. Therefore, in conclusion, this thesis makes different policy recommendations to the eastern, central and western regions according to three different empirical results.