The Research On The Operating Environment Of China’s Credit System Based On Provincial Statistics

Credit system is a series of institution arrangement to keep market economy inorder. It is the critical basis of development of market economy. At present, China isexperiencing economic transition. Under this special circumstance, it’s urgent toconstruct some credit system, not only for managing economic activities, but to createincentives and constraints for market players. It must take a long time before acomplete and perfect credit system comes into been in China. This long-time processhas to depend on the external environment. As a result, it’s necessary to analyze theoperating environment of credit system.The operating environment of credit system is a set of factors that influence theconstruction and function of the system. This paper aims to create an evaluationsystem, based on operating environment of credit system, to directly andcomparatively analyze the situation of operating environment in China’s31provinces,municipalities and autonomous regions form2006to2010. Firstly, the operatingenvironment of credit system consists of economic environment, f inancialenvironment, administrative environment, information technology environment aswell as cultural and educational environment, and the development of these fiveenvironments will influence that of operating environment. With the scientific andobjective principles, this paper builds an evaluation system by selecting indicatorswith operability and comparability. Secondly, with the combination of the principalcomponent analysis and regression analysis, empirical analysis of the evaluationsystems made. With the results of the analysis and facts, the regional difference couldbe found so that policies and recommendations can be given to improve the operatingenvironment of credit system.From the results of operating environment, China’s operating environment ofcredit system is steady. Among the regions, the eastern part of China has betteroperating environment of credit system, compared with the central and westernregions. Considering the results of each sub-environment, the eastern part has obviousadvantage, while the central and western part still has a long way to catch up with theeastern regions.