Financial Spatial Heterogeneity,governmental Behavior And TFP

In 2017,Premier Li Keqiang proposed in the government work report that the financial sector must strengthen its ability to serve the real economy and prevent it from escaping.As China has a vast territory,there are large differences in the spatial distribution of finance.These differences are reflected not only in the financial development which is represented by the spatial agglomeration of financial institutions or financial resources,but also in financial information sharing.The information in the financial sector cannot be completely shared due to geographical differences and the financial information will have different degrees of loss in the process of transmission.The development of various information technology means represented by the Internet has eased the information asymmetry,which will directly affect the ability of the financial service entity economy.In the current context of focusing on the quality of economic development and raising overall factor productivity,comprehensively examining the influence of financial spatial heterogeneity on total factor productivity is particularly important.Due to China's special economic system,the government has played an important role in economic development.The behaviors of both central and local governments will affect the development of the regional economy.The central government's transfer payments to local governments can be seen as a supplement to the deficiency in financial development.While local governments will influence TFP by local interventions and increasing science and technology expenditures,and the process of local government interventions will inevitably affect the allocation of financial resources.Therefore,the analysis of the three factors in a framework can more fully reflect the impact of finance on total factor productivity.This paper first summarizes the calculation of capital stock K and total factor productivity,introduces China's current methods for calculating total factor productivity,outlines their characteristics,application fields,etc.,and then defines the scope of financial spatial heterogeneity and analyses its influence mechanism on total factor productivity,then from the perspectives of both local government and the central government on local transfer payments,discusses the influence mechanism of government behavior on totalfactor productivity,and sorts out the logical relationship between financial spatial heterogeneity,government behavior and total factor productivity.In the following chapter,two core variables of financial spatial heterogeneity and total factor productivity growth indices are calculated.From two dimensions of financial development and financial information diffusion intensity,we describe China's financial spatial heterogeneity,in which financial information diffusion intensity adopts factor analysis method,and financial development indicators comprehensively consider the development of both bank sector and securities market.Regional securities markets with higher levels of financial development have developed better;SFA has been used to measure the regional total factor productivity growth index in the form of surpassing logarithmic production functions.Statistics have found that total factor productivity growth index shows a U-shaped development trend from a national perspective,while there are large differences between regions from the inter-provincial mean.In the process of measuring the TFP growth index,based on the latest official statistics,the PIM method was used to re-estimate the capital stock K of the provinces of China from 1952 to 2015.According to K data,it is found that there is an expanding trend in the regional gap of capital stock.Finally,from an empirical perspective,it is found that the effect of finance on total factor productivity has a positive effect at the national level,but this positive effect is not significant.After adding the financial information diffusion intensity variable,it strengthens positive effect of the financial development on total factor productivity.However,the impact of financial development on total factor productivity is greatly affected by the exogenous impact of the financial crisis in 2008.Financial development has contributed to total productivity before the financial crisis,while financial development has an inhibitory effect on total productivity after the financial crisis,yet finance The intensity of information diffusion can partially offset the negative effect of financial development on total factor productivity after the crisis.When grouped on the basis of government behavior,it is found that in the group with high marketization,high scientific and technological input and high transfer payments,the effect of financial development scale on total factorproductivity does not increase with the expansion of the financial development size,yet the intensity of financial information diffusion has shown its contribution to the promotion of total factor productivity,indicating that the improvement of information diffusion technology means promotes regional technological progress and thus promotes the improvement of total factor productivity.Therefore the government must pay attention to the appropriateness and directionality of intervention in order to make financial institutions play a positive role in promoting economic restructuring.