Empirical Measurement And Analysis Of Factors Affecting The Level Of Financial Development

Due to the special status of the financial industry and the inextricable link between financial development and economic development,research on financial development is of great significance.Based on reviewing the relevant theories of financial development and combing the relevant research literature,this paper constructs an indicator system to measure the level of regional financial development,and uses the panel data of 10 cities in China from 2000 to 2017 to apply the factors of multi-indicator panel data.The analysis combines the established 17 indicators to measure the financial development level of 10 cities,and compares the evolution and difference degree of financial development level of 10 cities from horizontal and vertical.Finally,the panel measurement model is established,and the economic industry is empirically studied by PCSE estimation method.The mechanism and path of the impact of factors such as science and technology on financial development.Through the research results of this paper:(1)The financial development level of the 10 cities studied is increasing and showing an upward trend.Since 2000,there have been fluctuations in some years.For example,there will be a sudden rise in 2008 and 2014 and then tend to be flat,but the overall trend is rising.The gap between cities is constantly widening.The gap between cities with high financial development levels such as Beijing,Shanghai,Shenzhen and Hangzhou and other cities is constantly widening.(2)Economic,industrial and government policies have a significant effect on the improvement of financial development.The development of local economy and the intervention of government policies have a very obvious role in promoting the level of financial development.There is a significant non-linear relationship between industrial process and financial development level,showing U-shaped results,while the industrial process has an inflection point of 16.08.When the industrial process of the city is lower than 16.08,it has a restraining effect on the level of financial development.The industrial process is higher than 16.08,which has a positive effect on the level of financial development.The impact of technology investment and openness on the level of financial development is not significant.The results are still robust after the effects of endogenous and exogenous shock events that have been eliminated and the conversion model.Based on the research conclusions,this paper also proposes practical policy recommendations to further improve the level of financial development from different perspectives.