Research On Influence Factors Of Provincial Inflations

The purpose of this thesis is to study the provincial inflations'influence factors and its impacts. It also explores if the whole China's inflation has certain differences with the provincial inflations in China. It is of significance to verify and supplement the previous scholars'researches and makes up the lack of regional researches about inflation in China. Finally, this thesis puts forward feasible policy suggestions to the provincial inflations.This thesis studies the influence factors of regional inflations mainly because there were some differences of provincial inflations, but previous researches about regional inflations are not enough. In the process of research, based on the previous researches, this thesis selects the panel VAR model and annual data of 31 provinces from 1990 to 2014 to explore the influence factors of provincial inflations. Thus this thesis has certain theoretical and practical significances. On the choice of influence factors, according to previous researches and data availabilities, this thesis selects those factors including the economic growth, fixed assets investments, foreign trades, real estate market, labor market, local financial expenditure and urbanization to explore their different whether for inflation.In this thesis, the empirical results indicate that those selected factors have influences on inflations, but most of the impacts are short-term impacts. Long-term influence factors including economic growth, fixed assets investments and real estate sales have the largest contributions to the inflations. For the eastern, central and western provinces, there are significant differences in the impact of fixed asset investment, real estate sales and local financial expenditure on inflation. Finally, according to research conclusions, this thesis puts forward feasible policy suggestions to the provincial inflations.