The Comprehensive Evaluation And Analysis On The Regional Discrepancies Of Financial Development In China

The modern theories and practices of economic growth have proved that there is a close relationship between the financial development and economic growth, especially the guiding role of the former. Such relationship exists not only in the surface of the countries, but also the regions, particularly in China. In this case, the study of the regional discrepancies becomes much more popular nowadays, not to mention the differences of financial development -one branch of the study.In a word, there are two aspects. One refers to the interactive relationship between the financial development and economic growth, the other is named as the regional discrepancies of financial development. However, the latter research merely concentrates on the astringency, while the issue of how to evaluate the discrepancies is seldom analyzed. From this point of view, the paper intends to find out whether the differences could be measured in all-around, and there are what sorts of characteristics.The following paper tries to set up a comprehensive index system for evaluating the regional discrepancies of financial development in China. The empirical analyses present that such discrepancies exist among regions and lie in the inner region, and the function of the environmental factors is especially remarkable. Moreover, the Hierarchical Cluster method helps us to re-classify the 31 provinces into 4 bigger areas, which provides the theoretical bases for formulating the different financial policies.