Research On Regional Financial Development Difference And Influencing Factors In China

Financial has taken an increasingly important role today in the development of economy. Finance, as the core of modern economy, has an important effect on economic growth. However the huge difference of financial development between different regions in China is detrimental for the development of the economy, which makes the research of regional financial difference and influencing factors of great significance. In addition, due to the commercial banks in our country has taken a central role in the financial system.Meanwhile the financial institutions of the loan to bank credit scale, coupled with lack of securities industry and the related data of the insurance industry. Based on that, in this paper, the deposit and lending financial institutions and the ratio of gross national product to measure the level of regional financial development, said the regional differences of financial development.This paper by measuring the corresponding indicators from two angles of divisions and overall analysis of the differences between the status. From the point of view, in the banking sector, the eastern region banking development indicators, the highest efficiency in the western region, followed; And in the field of insurance and securities, insurance and securities development level between various regions in China is put in bigger difference,the eastern region of the efficiency level is significantly higher than the other three regions.From the perspective of the overall difference of the east are still high levels of financial development but difference degree is far less than the divisions between regional point of view.Based on the four financial region ratios at field index, the study found that Chinese overall financial development difference is mainly composed of regional financial difference between the provinces, and the differences between the four regions account for only a small part of the overall difference. In four regions internal differences, the eastern region internal financial development difference between provinces, the largest internal differences than other provinces in the east three areas internal financial development difference between provinces, is the difference between regional financial development inour country. From the trend, China’s overall financial differences and area change tendency and the four large area internal differences, differences showed a trend of rising year by year until 2008, after 2008 the number is declining.To conclude the financial development difference cause by the difference of regional financial development in our country, based on the 31 provinces in China for 14 years in2000-2013 panel data for empirical analysis. The empirical results show that the level of regional financial development of the economic development level, urbanization level, the level of government support, factors, such as level of industrial structure, industrial structure level is the most important factor that influences the financial development level of government support is positively related to the regional financial development, and the level of economic development associated with financial ratios to present negative correlation relationship, marketization level, no significant influence on the regional financial development.