Study On The Efficiency Of Finance Support The Development Of Real Economy

In recent years, with the improvement of China’s financial development level, finance plays a more and more important role in Finance Support the Development of Real Economy (FSDRE), the financing scale of the Real Economy gradually expands, and the financing structure is gradually improved. However, the financial support that the Small and Micro Enterprise (SME) gains from the Finance is till small, and the financing cost of the real economy is still high, such problems still restricts the development of China’s Real Economy. At the same time, the development of financial industry is faster than the Real Economy, the problem that the rapid growth of financial assets and fund "from real to fictitious" is gradually highlighted, the efficiency of FSDRE in China is therefore questioned.Based on the panel data of31provinces during2003and2012in China, this paper measured the efficiency of FSDRE, and efficiency index is decomposed by using the Malmquist index method. The results show that, firstly, the efficiency of FSDRE in China during2003-2012presented a downward trend, despite increased during2010-2011, from2003to2012, the average efficiency is still falling, wherein, the deterioration of the macro economic and financial environment is the main reason for the decline in efficiency of FSDRE. Secondly, the efficiency of Real Economy use financial funds gradually improve, but the scale of financial funds input needs to be improved, in particular, eastern region meets the problem of excessive input, and western area is just the opposite. Thirdly, the efficiency of FSDRE has some differences between regions and provinces, average growth rate of the efficiency of FSDRE in eastern, central and western region successively decreased.Base on the differences in the efficiency of FSDRE in the different provinces, this paper analyzed the provincial efficiency differences by using the fixed effects panel data model, the results say that:Under the non-balanced development background of finance and Real Economy, the larger the scale of financial industry itself, the lower the efficiency of FSDRE. At the same time, the monopoly of finance provinces will decrease the efficiency of FSDRE, and the impact of the proportion of direct financing on the efficiency of FSDRE is not significant.Therefore, the methods below can be adopted to improve the efficiency of FSDRE: First of all, use the capital allocation ability of national commercial bank, guide the financial elements from the more development areas flow into the backward areas, and promote the flow of financial factors among cross regional. Secondly, enhance the financial support to SME, establish the tracking mechanism of financial capital flow, guide the development of the financial industry and financial innovation under the orientation of serve the Real Economy, and promote the balanced development of finance and the Real Economy. Thirdly, accelerate the development of OTC stock market and bond market, improve the exit mechanism of equity financing such as PE and VC, broaden and optimize the direct financing channels of the Real Economy. Fourth, reduce the access threshold of financial institutions, deepen the reform of interest rate marketization, make full use of the decisive role of market in the allocation of economic resources and financial resources, avoid financial monopoly reduces the efficiency of FSDRE.