Evaluation Of The Economic Growth Effect Of The Experimental Areas Of Financial Comprehensive Reform

In order to solve the "private lending crisis" in Wenzhou,the State Council set up the first National Experimental Area of Financial Comprehensive Reform in 2012,which is Wenzhou.After that,four Experimental Areas of Financial Comprehensive Reform,including the Pearl River Delta,Quanzhou,Yunnan-Guangxi and Qingdao are gradually built.These five Experimental Areas of Financial Comprehensive Reform are all comprehensive reform at the financial level,but they have different tasks in reform.They are piloted in specific financial fields respectively and accumulate great experience in conducting China's future comprehensive financial reform.By the end of 2017,Wenzhou,built at the earliest,has been set up for six years,and Qingdao,built at latest,has been set up for four years.So what is the effect of the reform in the Experimental Areas of Financial Comprehensive Reform?Has it promoted the growth of local economy?All these are the problems that we need to understand and solve urgently.We use synthetic control method by Abadie and Gardeazabal(2003),choose real per capita GDP as explained variable and the population density,three industry ratios,investment ratio,the ratio of dependence on foreign trade and financial interrelation ratio as explanatory variables,and use the balance panel data of 45 cities from 2000 to 2015 in our country to study the effect of Experimental Areas of Financial Comprehensive Reform on economic growth.The results show that the effect of different Experimental Areas of Financial Comprehensive Reform on economic growth is different.Specifically,the financial reform in Pearl River Delta and Qingdao promotes economic growth,and the financial reform in Wenzhou and Yunnan-Guangxi restrains economic growth,while Quanzhou's financial reform has little influence on its economic growth.The empirical results fully show the nonlinear correlation between financial development and economic growth.That is to say,the financial development will promote economic growth in economic developed areas while restrain economic growth in economic backward areas.And there is little connection between financial development and economic growth in economy less developed areas.Therefore,in the economically developed areas,the government can stop financial market intervention according to the financial deepening theory and implement the financial liberalization policy.For the economically underdeveloped areas and backward areas,the government should properly intervene the market based on financial constraint theory and slowly advance the process of financial liberalization.