A Study On The Inter Provincial Measure And Converge Of Financial Development In China

Finance has increasingly become an important part to evaluate a country 's comprehensive national strength,so it is particularly important to estimate the level of financial development.Since the reform and opening,different development strategies has begun in all region in our country,which has indeed led to the overall level of economic development in China,but it has also led to the imbalance of regional development.Regional financial development is becoming more and more different,which in turn restricts the overall development of China 's finance.On the basis of the existing researches,this paper first constructs comprehensive factors that can comprehensively measure the level of financial development,and then evaluates the level of financial development in China as a whole and at the inter-provincial level.Secondly,the convergence of financial development level is studied,it is in order to find out whether China 's financial development is divergent or convergent,and put forward relevant policies and recommendations to promote the balanced development of our provinces and municipalities.Firstly,there is no unified and accepted index for measuring the level of financial development.Therefore,a reasonable evaluation index is very important for the study of the difference between financial development and financial development.Based on the shortcomings of existing indicators,this paper constructs a comprehensive factor to measure financial development from three dimensions:financial width,financial depth and financial density by factor analysis.Secondly,this paper chooses the convergence model to study the difference of financial development,which is divided into ?-convergence,?-convergence and club convergence.?-convergence is used to analyze the absolute difference of financial development;?-convergence refers to the region with lower initial financial level whose development speed is faster than that with higher initial financial level;Club convergence means that regions with similar initial financial level will converge to the same stable level,thus forming different clubs.In empirical research,this paper studies the level of financial development whether convergent o not with two indexes.The results show that:the overall level of financial development in China is getting higher and higher,but the financial development differences between provinces and cities are also growing,so there is no ?-convergence.However,through the experiments with two kinds of index,results indicate the financial development in China have ?-convergence and club convergence,but there are different clubs.Finally,according to the specific research results,the paper puts forward policies and recommendations to promote the balanced development of China's finance.Firstly,we should continue to give full play to the regional advantages of the eastern region,and then drive the financial development of the central and Western regions;secondly,we should formulate policies conducive to the development of enterprises in the central and western regions so as to tilt the policies towards the less developed regions of financial development;moreover,we should increase more financing channels in the central and western regions to solve the financing difficulties of real enterprises,which can also promote the financial resources to the entities.Finally,we should unswervingly implement the strategy of balanced regional development,effectively improve the disparity of regional financial development in China,and achieve balanced national financial development.