Research On The Savings-investment Transformation Efficiency Of Chongqing City From The Financial Aspect

It is impossible for the economy to grow without the formation and accumulation of capitals. The capital formation is materially based on the rich supply of savings. However, supply of savings can not ensure a higher level of capital formation. And the efficiency of savings-investment transformation is the key point. The present status for savings-investment transformation is the co-existence of a large amount of excessive savings and introduction of vast foreign capitals. That is to say, a large amount of savings are left idle, and meanwhile, foreign capitals are brought in at a great expense, which is the peculiar economic phenomenon in our country, unprecedented in other countries or in our history. This phenomenon essentially reflects the low efficiency of savings-investment transformation.In reality, it is hard for each department to make the saving scale equal to investment demand in either space or time. And the investment in some departments with impairment of capital might be restricted by the inadequate saving scale. In this situation, an effective mechanism is needed to realize the transformation of savings from departments with capital surplus to departments with impairment of capital, so as to increase the capital formation. This is called financial mechanism determined by separation of saving and investment parts. The significant role of financial mechanism in savings-investment transformation makes it the core mechanism in this process.During the economic reform, a large amount of national savings was brought into those industrial sectors needing much investment by financial path, leading to continuous and substantial increase and hence the rapid economic growth. However, at the same time, we found that in the savings-investment transformation, the financial sector could not play the roles they should play, which shows the low efficiency of resources allocation and unsatisfactory function of improving economic growth. The main problem in Chinese economy is not inadequate consumption but something goes wrong in the transformation from savings to investment. The rapid growth make people ignore the inadequate savings-investment transformation behind that, which could not be underestimated.Located in the upper reaches in Yangtze River, Chongqing is the core city in southeast and also the youngest directly governed city. Therefore, the economic growth in Chongqing exerts a great influence on the development of west area and upper reaches in Yangtze River. In recent years, the economy in Chongqing grew at top speed, and the saving resources became increasingly abundant. There is no doubt that tremendous savings is the potential motive of economic growth, but it should be transformed into real and effective investment, or it will be idle and wasted. Therefore, the author chose Chongqing as the object of study and thought it was necessary to analyze the transformation status from savings to investment in Chongqing from the financial aspect, and provide some useful proposals for the economic growth in Chongqing from the angle of savings-investment transformation.Literature and empirical research were adopted in this paper. Apart from introduction and conclusion, there are other four major parts.In the first part, the efficiency of savings-investment transformation was analyzed theoretically, and some definitions such as savings, investment as well as the efficiency of savings-investment transformation were made through reviewing related literature home and abroad. In the second part, the present status of transformation efficiency in Chongqing was identified. Through a great deal of data analysis, it was found that the transformation efficiency was undesirable. In part three, the cause of low transformation efficiency in Chongqing was analyzed from the financial aspect. And several causes were found, such as the low efficiency of credit allocation for financial medium in Chongqing, single channel and tool of savings-investment transformation in financial market, and so on. In the forth part, some proposals on how to improve the efficiency of transformation in Chongqing were presented, such as continue to deepen the reform of state-owned financial enterprises, and exert great efforts to develop non-state-owned banks and non-bank financial institutions and so on.