Research On The Growth Of Zhejiang’s Financial Ecology

As the general financial theory says that, there should have been no obvious differences infinancial ecology between different areas of a unified economic body. But the imbalance of China’sregional financial is quite serious. The report of Chinese city financial ecological environmentevaluation published by financial research institute of chinese academy of social sciences revealsthat, the Zhejiang’s financial ecology is of high quality with special features. Upon such abackground, in order to find how the financial ecology is formed, this research takes ZhejiangProvince as its study object, and makes analyses according to the theory of financial development,law and finance and institutional economics and through empirical analysis method of statisticaldescription, principal component analysis, correlation analysis, granger causality test andcoupling coordination model. It explores the growing process of financial ecology on the basis ofinteraction between finance ecological subject and environment and analyses it frominteractive foundation, mode and effects. It is also devoted to inspire the financial construction ofother areas.Results reveal that, it grows endogenously of Zhejiang’s financial ecology. Firstly, theprimary state of finance ecological environment in which private economy is the dominant figurecomes from the interaction of its elements. Then in the constraint of specific choice space, informalfinancial emerges after the profit opportunities, and the government’s acquiescence and supportensure its development. As a result, informal finance becomes the main financial support of privateeconomy. Next finance ecological subject affects finance ecological environment conversely. Boththe informal finance which takes the main place and formal finance which serves as a supplementsupport the development of private economy. By such a interaction, financial ecology’s Zhejiangmodel comes into being and strengthens itself constantly.Results of coupling coordination model which is to test the interaction effect reveal that thereis always a strong cooperation between finance ecological subject and environment. However, thedevelopment of ecological subject always lags behind the ecological environment. This limits theoptimization of ecological environment system in a certain extent.It can’t be followed completely as its endogenous growing process. But the practice ofgovernment to elaborate comparative advantage is of great value to others.