Research On Financial Ecology Environment Evaluation On Basis Of System Dynamics

Financial ecology is a relatively new concept. It was introduced by president of central bank, Zhou Xiaochuan, at "Forum of 50 Economists" in the report named "Perfecting the Legal System and Improving the Financial Ecology" on December 7^th 2004. He extended the ecological concept into the financial area and later derived the concept financial ecological environment from financial ecology.A favorable financial ecology environment is marked by potential development in harmony. Economic and financial departments should have specific judgment and qualitative criterion to financial ecology so that can reflect the condition of financial ecology in an area and reveal problems timely. And then it can give decision basis for regulating regional financial ecology.At first, the paper expounds the background of the title selected and introduces the state of domestic and foreign research. Next, on the base of summarizing many scholars' achievements, it defines the concepts of financial ecology and financial ecology environment, sorts out the relationship between them, viz. financial ecology environment is not the equal of financial ecology and financial ecology environment is a part of financial ecology, and reveals their property. The core of the paper is that it introduces the system method, which is emphasized by system dynamics into the study of financial ecology environment evaluation; so, it is necessary to introduce the basic principle, the entire course of formation and development and basic characteristics of system dynamics and the system dynamics software-Vensim PLE. At the same time, the applicability of system dynamics in the study of financial ecology environment evaluation is analyzed. Following, the study builds the system dynamics causal relationship after learning the index systems in "The Financial Ecology Environment Evaluation in Chinese Cities" and selecting a part of them and analyzes the causal feedback loops. Finally, applying the thought and method of system dynamics, the paper establishes S-D model of financial ecology environment system and analyzes subsystems one by one. On the basis of collecting Wuhan's statistical data, the thesis analyzes positively the model and knows that the environment of law and government behavior are very important in financial ecology environment and intermediary services are in a position of a lower level. Therefore, some specific proposals to improve financial ecology environment according to the simulation results are given.The main innovation in the paper is that, first, introducing system dynamics into the study of financial ecology environment evaluation and building the system dynamics causal relationship and model; second, on the basis of collecting Wuhan's statistical data, analyzing positively the model and trying to give proposals to improve financial ecology environment.