The Research On Spatial-temporal Analysis Of China’s Provincial Financial Development Dynamics And Its Influencing Factor

The financial system is the power and plays an important role in the developing of regional economics. The unbalanced development of the regional financial systems affects not only the the coherent development of the nation but also the national unity and social stability. So it is important for us to find financial measures of reducing regional financial disparities through studing the pattern of the provincial financial development disparities.By constructing a comprehensive financial development index which covers the three major financial industries consisting banking, security and insurance, the results show that there exist significant differences in financial development across the provincial areas and three regions in China.Based on Kernel density estimates and Markov chains methods, by introducing spatial factors into the analysis framework, China’s provincial financial development (1999-2009) dynamics are studied. The results from temporal dynamics suggest that there is the evidence of club convergence. Majority of low-level areas of the financial development and a small number of high-level areas of the financial development are both exist for a long time. From the spatial perspective, we find that financial development regional level are partly influenced by proximity effects and there is a trend towards the development level of neighbors.Based on spatial econometrics, the paper build different models of factors influencing the financial development with the panel data of the31provinces in China from1999to2009.The results show that, the spatial effect between Inter-provincial financial industry in China and its influence factors is a kind of convergence effect. The level of economic development has the most significant positive impact for China’s financial development. The improvement of the human resources level plays a significant role in promoting the development of financial development. And the level of the urban infrastructures and the opening are also conducive to the development of local tourism. However, the level of investment in fixed assets doesn’t significantly affect China’s financial development.