A Study Of The Effect Of Interest Rate Liberalization In China Upon The Allocation Efficiency Of Financial Resources

The finance is the core of modern economy,the allocation efficiency of the financial resources determines the quality of economic development of a nation,and as a result,the rate of the financial resources allocation efficiency determines the rate of the entire economic efficiency in a big way.But as a prize of fund,the interest rate serves as a bridge and tie between the finance and real economy and densely reveals the certain information of the financial resources allocation.Since the beginning of 1970s,with the high inflation and the fast development of financial market,the disadvantages of controlling the interest rate become increasingly obvious,hence the practice of the reform of interest rate liberalization comes out as a worldwide tide after the 1980s.What so-called interest rate liberalization is actually a management system of interest rate which sufficiently shows the need and supply of market and the rareness and shortage of fund in a multilevel and flexible way,with the benchmark interest rate as its center and market interest rate as its main body.To be specific,it means that the central bank offers the right of determination of the interest rate to the market,the high or low level of the interest rate is determined by market itself,the central bank indirectly carries out the currency policy through some adjusting and controlling measures.On the basis of certain research products at home and abroad,the present paper first summarizes the ways and experiences of the reform of interest rate liberalization conducted by other countries of the world through sorting out both theoretical research and empirical research of the interest rate liberalization and the financial resources allocation efficiency by scholars at home and abroad.Then relying on the related economic and financial data of our country from 1996 to 2016,it analyzes every target reflecting the financial resources allocation efficiency by way of DEA,works out the scores of each year's financial resources allocation efficiency,and offers them and interest rate a returning analysis again by way of VAR,hence it exlpores the changing conditions of the financial resources allocation efficiency in the course of the interest rate liberalization of our country and the relationship between them.Finally it makes some suggestions for the problems of how to take a further reform on the interest rate liberalization and how to make the financial resources flow to different economic sides in order to promote economic growth.