A Study On The Spatial Effect Of Regional Innovation Efficiency On China 's Pratt & Whitney Financial Development

The main regional innovation efficiency is from small and medium enterprises(SME), especially the higher the regional innovation efficiency, the more investment opportunities. But SMEs have strong financing constraints,then they need inclusive finance to ease financing constraints, therefore, the regional innovation efficiency can drive the development of inclusive finance.This paper will use Chinese data of 30 provinces and cities which is from2008 to 2013, and use spatial autoregressive model to test the relationship between the regional innovation efficiency and the development of inclusive finance, research ideas are as follows:Firstly, calculate the regional innovation efficiency with the Stochastic Frontier Analysis(SFA) and the Inclusive Finance Index(IFI) with the variation coefficient method from 2008 to 2013; then use the cluster analysis to divide our country into three parts of high, medium and low regional innovation efficiency, and use the multivariate analysis of variance to test inclusive financial index’s difference in the area of high, medium and low regional innovation efficiency and the difference in east, middle and west regions. After comparison, there are no significant difference in the area of high, medium and low regional innovation efficiency, while in the east,middle and west there are significant differences, indicating the relationship between the regional innovation efficiency and the development of inclusive finance is regionally different, and this regional difference leads to that inclusive financial index does not differ significantly in the area of high,medium and low regional innovation efficiency; Then, the paper will use spatial autoregressive model in the country, eastern, central and western regions, respectively, to examine the impact between the regional innovation efficiency and the development of inclusive finance. The result obtained is the regional innovation efficiency can drive inclusive finance for development inthe east, however, in the central and western region it does not promote inclusive financial development, which has some links with the unrealistically high regional innovation efficiency in the western region, for the central region we should have further study; Finally, the spatial effect between the regional innovation efficiency and the development of inclusive finance is decomposed into direct effects, indirect effects and total effect. After analyzing, we think the feedback effect between the regional innovation efficiency and the development of inclusive finance is small no matter in the country, eastern, central and western regions and there are significant spatial spillover effect on the impact between them across the country.