The Measurement And Reason Decomposition Of Non-Equilibrium Development Of Regional Financial Industry Of China

As the bridge and hub of different markets and elements, financial industry playsan important role in resources allocation of market, and is an important component ofthe currency economy. After thirty years of reform and opening to the outside world,financial industry in china has developed to be a modern financial industry includingBanking, Security and Insurance. However, as a fatal weakness of the modernfinancial industry in China, there is a big gap in the regional financial industry on thefinancial structure, the financial aggregates and financial efficiency. And thisnon-equilibrium not only restricts comprehensive and sustainable development of thefinancial industry in our country, but also impedes the coordinated and continuousdevelopment of our society and economy. Furthermore, in the current researchesabout financial theory, most of them are macro-finance theories and micro-financetheories; regional financial research is relatively few. Under the circumstances, thispaper is to explore this problem of non-equilibrium development of the regionalfinancial industry in China.This paper uses the research methods of the combination of static descriptionanalysis and dynamic trend analysis, specification analysis and empirical analysis,strives to effectively and objectively reflect the real situation of the non-equilibriumdevelopment of regional financial industry in China. The paper includes four mainparts: firstly, we provides an overview of the properties, the theories, the reasons andthe development indicators of regional finance; secondly, we measures the gap offinancial industry in the three regions of China, by using of Principal ComponentAnalysis and dynamic trend analysis; thirdly, we infers the causes of non-equilibriumdevelopment of the regional financial industry in China by regression analysis, andjudges the main reason for non-equilibrium development of the regional financialindustry in China by the method of regression-based decomposition; finally, weproposes targeted countermeasures and suggestions of coordinating the regionalfinancial industry in China, based on the previous conclusions of the study.Through the empirical research, the paper can obtain the following conclusions:first of all, whether it is in the inter-regional or regional of China, the difference oftotal volume of financial industry is obvious; secondly, the indicators selected by theempirical model in this paper, such as economic scale, economic structure, market-oriented, physical capital, government intervention, innovation andgeographic location, can explain excellently the non-equilibrium development of theregional financial industry in China, the goodness of fit of the empirical model is upto92%; finally, the decomposition result shows that economic scale, economicstructure and government intervention are the main reasons leading to thenon-equilibrium development of the regional financial industry in China. The researchof this paper has two aspects of innovation; first, we use a combination of staticanalysis and dynamic analysis method to measure the differences of the regionalfinancial industry in China; second, we measure and quantify the main reasons for thenon-equilibrium development of the regional financial industry in China, by themethod of regression-based decomposition.