Design Of Financial Internationalization Measurement System For Shandong

The measure of regional financial internationalization degree is different from the measure of the national level. As special as it is, especially under a country’s overall legal system constraints, we can’t use the method of legal description to measure these index, nevertheless, the regional financial internationalization level is obviously different in fact. In Shandong province since 2014, with the begin of “financial reform” process, the provincial financial internationalization has became a focus of the reform. Although that the performance of the financial industry of Shandong province lags behind that of the real economy when comparing with other east China’s province, it does not necessary mean that the financial industry in Shandong province is too early to talk about internationalization degree. Financial naturally has the nature of the pursuit of high yield and profit, breaking through the border. And export-oriented economy in Shandong province is really strong, together with China and South Korea free trade area and the advance of the speeding up of the internationalization of the RMB, so to improve the level of internationalization as one of the important direction of Shandong province "financial reform" is nothing strange.The internationalization of regional finance itself, however, seems to be a paradox, when regional finance is subject to domestic regulation of opening capital account. So regional financial internationalization should be more homogeneity rather than more heterogeneity. While the real economic operation situation is not the case, in the influence of many factors, such as the location, the finiteness of the policy, economic structure, etc.. The influences of regional financial internationalization degree show great differences in fact. Many phenomena show that in the process of financial internationalization, Shandong province is in a relatively backward position, especially compared with other developed provinces in the east. Therefore, if it proven financial internationalization level of Shandong province really lagged behind its economic internationalization level; and how to describe the gap of regional financial internationalization under the unified rules; and what policy meaning will be leaded with such a description of the index system; also, how to use the index system for the evaluation of the current policy reform direction. All of these questions has became the emphasis and difficulty in this study. And of course, this process is the process of establishing regional financial internationalization measurement system.This paper then collected a total of 10 basic indicators of foreign-related economic and financial from multiple angles, using the factor analysis method to extract four factors. And giving the index weight, this paper set up the index of a four dimensional space, which greatly reduced the complexity of original index and correlation of the interference. This index system successfully constitutes a test of the four dimensions of financial internationalization called "Current Account Factors", "Capital Account Factors", "Openness of Finance Inside the Area”, and " Financial Cooperation Abroad”. The four dimensions almost covers all aspects of the financial internationalization, and what’s more important is that the correlation between the four dimensions are weaker, numerical unit matrix characteristic value composition. And that’s exactly the purpose of factor analysis method when used for dimensionality of the system.Using the data of the six provinces on the east coast of China in the year of 2005-2014 for empirical testing, the results showed that with the economic development speed and the export-oriented degree, financial internationalization Shandong on the four dimensions are not prominent between the east China’s provinces. In Shandong province, improving the financial internationalization direction should focus on capital account openness, accelerating openness of regional financial business to the outside world, and introducing more foreign financial institutions. Under the policy guidance of this theory, this article also evaluated for the current "financial reform measures” in Shandong province.