Empirical Research Of The Relationship Between Credit Environment And Financial Development

Since the world financial crisis in 2008, countries all over the world have gradually strengthened the importance of financial development, the financial industry has been more and more important in the economic development. China's financial industry is not well developed, there is also a phenomenon of uneven development between regions, so there are many scholarsestablishmenting of relevant indicators system research China's financial development and its impact factors. With the development of society, credit plays an important rolein the economic, cultural, and political aspects.The forehead research of credit environment in China is relatively rare, generally they established evaluation index system, using data for the relationship between the calculation and Research on credit and other economic variables is short. The research of credit environment is no longer limited to personal integrity, but involves multiple aspects of culture, economy and information environment, enterprise effectiveness,we established a system include three grade rating index, and used China's 28 provinces' annual panel data to study its relationship with the development of the financial, this is also the innovation of the essay.In this paper, the domestic and foreign literature are reviewed, the research status of credit environment, financial development and the relationship between them were summarized. Then we explained the present situation and causes of China's credit environment and financial development, and analysised the credit environment of financial development's mechanism, put forward two hypotheses: H1 Area credit environment's improvement will promote the improvement of the regional financial development; H2 The effects of credit to the financial development are large differrences between Areas.After the theoretical analysis, We sumerised the previous research results to measure financial development and credit environment, by building the three-level indicators evaluation index system to measure the credit environment, The second-class indexes includes cultural environment index, economic development index and enterprise efficiency index, credit scale index, opening index and information environment index, and then divided into 21 third-class indexes, using PCA method reduction to extract 3 principal components of the credit environment :Macroeconomic environment,Living standards of residents and Enterprise operation efficiency,At the same time using Mackinnon's M2/GDP tomeasure the level of China's financial development.Causing M2 is a national level data, this paper adopts the annual financial institutions loan amount devide the GDP elimination of price impact to carry out calculations.Panel regression model was established by using China's 28 provinces'(Tibet,Chongqing, Yunnan and Hong Kong, Macao and Taiwan are not included)annual data from 2000 to 2014, using unit root test, panel cointegration test and Granger causality test to analysis the impact of the credit environment of financial development, and use the GMM method for the robustness test, the results show that the macroeconomic environment and the living level of residentshave a significant promoting for China's financial development, and the effect of eastern region representing more obvious than the central and western regions. At the end of this paper, we put forward the policy suggestions on how to strengthen the construction of credit environment and promote sustainable development of China's financial industry.