| Gradually loosening(or even lifting)financial regulation is a key area and important component of China’s comprehensive deepening of economic reform and opening-up.The basic requirements are to clarify the boundary between the government and the market,to relax and abolish financial regulation,to strengthen the financial system,and to promote the reform of financial regulation.International practice shows that political factors have a decisive impact on financial regulatory reform.Therefore,from the perspective of reflection and summary,it is helpful to study the mechanism,direction and degree of political factors in the process of financial deregulation in China,so as to provide theoretical reference for the follow-up policy actions.This paper expounds the basic theory of financial deregulation and the mechanism of the effect of political factors on financial deregulation.With the help of financial liberalization index,this paper investigates the process and evolution of financial deregulation in China from 1981 to 2017.The political influencing factors of the process are analyzed empirically by using multiple linear regression model.Based on the empirical results and their explanations,the paper puts forward policy Suggestions and points out the follow-up issues.The main conclusions of the paper are:1.The process of financial deregulation in China is characterized by distinct stages.According to the range of the measurement results of the paper,China’s financial deregulation has gone through a stage of gradual climb(1981-2000),rapid progress(2001-2006),stagnation(2007-2011)and continuous deepening(2012-present).By the end of 2017,the level of financial deregulation in China was 64.3 percent.2.The impact of legal system,institutional(regulatory)quality and interest groups on financial deregulation in China is positive.The improvement of the legal system and the quality of supervision is conducive to the strengthening of the protection of investors and the implementation of the guarantee system,which is conducive to the financial development and financial deregulation.Different from the conclusions of existing literatures,this paper finds that the influence direction of interest forces is positive,mainly because of the special structure of interest groups in China and the incentive of trade opening to interest groups to promote financial deregulation.3.The influence of political system on financial deregulation in China is negative.The greater the power of political interest groups,the more likely they are to push for financial reforms that improve efficiency and benefit most people.Therefore,the concentration of political power is conducive to promoting the process of financial deregulation in China.4.China should continue to steadily promote financial deregulation.China should pay more attention to the improvement of the legal system,improve and improve the quality of supervision and other systems,while giving play to the positive and important role of unique political factors and strengthening the supervision of the exercise of power.This paper attempts to examine the process of financial deregulation in China from the perspective of political factors and preliminarily interpret the influence mechanism of interest groups and political system based on China’s actual situation.However,due to the selection of variables and the availability of data,the research period is short.Because of multicollinearity problem,the analysis is not enough to select only one economic and social factor as the control variable.This will be followed up and improved in the future. |
