A Quantitative Analysis On Financial Marketization And Capital Allocation Efficiency In China

With enhancement of national strength,the international status and influence of China's financial market is becoming more and more obvious.Financial marketization reform has become an important part of economic development in China.This paper constructs an index system to measure the financial marketization from the degree of the financial market financing,the degree of non-financial influence and the degree of opening to the outside world.In this paper,Wurgler's(2000)model is used to test the panel data of 30 regions in China in the past 14 years.The results show that significant positive correlation between the financing scale and structure of China's financial market and capital allocation efficiency,significant negative correlation between interest rate marketization and financial opening to the outside world and capital allocation efficiency,no significant correlation between the fiscal intervention and capital allocation efficiency.