Financial Competitiveness Comparison Analysis For The City Of Yangtze River Delta Region

While the economic development in China is expanding rapidly, the difference ofregional economic development is increasingly growing, and the financial abundance indifferent regions is quite distinctive. The state of regional financial development isnon-balanced. Yangtze Delta, as the most active region in China, is ahead of the centraland western regions in the degree of financial development, but its pace of economicdevelopment in recent years has significantly lagged behind the central and westernregions. From an international perspective, the pace of economic development of theYangtze River Delta region slowing down is even obvious, but standing on the point ofcountry we can find that the difference of the pace of economic development amongdifferent regions is not very significant in Europe, the United States and otherdeveloped countries. Therefore, this article attempts to establish a set of evaluationindex system in financial competitiveness of the Yangtze River Delta region, toexamine the reasons why lagging behind the central and western regions from thefinancial competitiveness perspective.By choosing25cities in Yangtze River Delta region as the sample, referring theIMD and related research on the competitiveness of the financial index system,combined with the actual situation of the Yangtze River Delta region we haveestablished the city’s financial competitiveness evaluation index system of the YangtzeRiver Delta region. On the basis of the index system, we have used factor analysis,cluster analysis and echelon analysis measurement methods to investigate the financialadvantages and disadvantages of different cities in the Yangtze River Delta in2010, ratethe financial competitiveness level in different cities of the region, analyze the flow offinancial resources among the financial-center city, the secondary-financial-center city,and the whole Yangtze River Delta region’s financial system. Finally, combined theempirical results with the actual situation of economic operation we have proposedsome recommendations to promote the financial development of the Yangtze RiverDelta region.This paper is composed of the following parts:First, defining the concept and content of city financial competitiveness, reviewingthe competitive theory briefly, and focusing on listing and elaborating related researchesof the city financial competitiveness at home and abroad. Through analyzing the existing research, the study approach, the model, the theoretical basis, and the type ofdata to be used in the calculation of the indicators is established basically.Secondly, according to the actual situation, combined with existing research, thecity financial competitiveness evaluation index system is divided into two majorcategories: the competitiveness of the financial system and the competitiveness offinancial ecological environment. Financial ecological environment competitiveness issubdivided into four aspects: comprehensive economic competitiveness, opening upcompetitiveness, scientific and educational personnel competitiveness and infrastructurecompetitiveness. As for econometric analysis, we mainly use factor analysis method,and clustering analysis based on financial competitiveness score to divide the city level,then we can get the echelon analysis of gradient city quantitatively. In addition, Byusing GDP growth and financial competitiveness ranking we attempt to do a simpleregression, based on which we have proposed some advice.Thirdly, through the analysis of the financial competitiveness of the Yangtze RiverDelta, we divide its25city divided into five levels. Shanghai belongs to level1. Suzhou,Nanjing and Hangzhou belong to level2. Ningbo and Wuxi belong to level3. Changzhou,Nantong, Shaoxing, Wenzhou, Xuzhou, Jiaxing, Jinhua, Taizhou, Taizhou, Yangzhouand Zhenjiang belong to level4. Huzhou, Lianyungang, Yancheng, Huai’an, Lishui,Quzhou, Suqian and Zhoushan belong to level5. From the perspective of province, outof Jiangsu province’s13cities,5belongs to top10,6belongs to10-20, and2belongs tothe last5. This indicates that city financial competitiveness of Jiangsu is better while theinternal difference is bigger. Out of Zhejiang province’s11cities,4belongs to top10,4belongs to10-20, and3belongs to the last5. This indicates that city financialcompetitiveness of Zhejiang is weaker while the internal difference is smaller. What’smore, through factor analysis we can find out the reason why a city’s financialcompetitiveness is weak or strong to some extent, for example, due to the lowercompetitiveness level of opening up, Hangzhou is only ranked fourth. And theconclusion obtained by cluster analysis is almost the same as factor analysis. Then byusing echelon analysis measurement we can see that Shanghai is the financial center ofthe Yangtze River Delta region, thus has the strength and potential to create aninternational financial center. Suzhou and Hangzhou are the financial center of JiangsuProvince and Zhejiang Province respectively, thus are the secondary financial centers inthe Yangtze River Delta. And Nanjing can be the secondary financial center of Jiangsu,and Ningbo can be the secondary financial center in Zhejiang. Thus the whole Yangtze River Delta region can become a complete and well-developed financial radiationsystem. The flow of financial resources is from Shanghai to Suzhou and Hangzhou, thenfrom Suzhou and Hangzhou to Nanjing and Ningbo, and then spread down to othercities, to form a "point-axis-face" development model, in order to form a similar citygroup as New York city group, Tokyo city group and so on.Finally, according to the analysis conclusion, combined with the factorsinfluencing the city financial competitiveness, based on the actual situation around, Wepropose some recommendation to enhance the financial competitiveness, hoping topromote the economic development of Zhejiang province much better and faster.