Research On Regional Financial Ecosystem's Operational Efficiency And Coordinated Development

Since 1980s, dozens of financial crises have been recorded throughout the world. These crises not only take place in developed countries, but also in developing countries. Their high frequency of occurrences reminds governments about the impact of the financial risk, moreover, the importance of balancing coordinated development and their corresponding risk. Financial developments usually accompany with market risk. The trend of developing modern financial markets requires considering both operational efficiency and risk accordingly. It means connecting short-term and long-term financial developments as well as making harmonious developments between financial developments and social developments. The purpose of studying financial ecosystem is to prevent financial crisis, improve the allocation efficiency of financial resources, encourage the harmonious and efficient operations of financial ecosystem, and secure national economy. It is of profound theoretical and practical significance.Starting from the study of China financial ecosystem's operational efficiency and coordinated development, while associating with productivity theory, coordinated development theory, financial development theory, sustainable development theory, financial ecology theory, and some other related theories, this paper adopts the principle component analysis and coupled coordination degree index to analyze the status of China financial ecosystem competitiveness and coordinated development in different provinces and time periods. This paper also use the nonparametric Data Envelopment Analysis (DEA) method and malmquist index to measure both static and dynamic operational efficiency of China financial ecosystems for 29 provinces. Modern econometric instruments are also utilized to find the factors which result in the differences in the performance of financial ecosystem. This kind of instruments provide basis for encouraging the orderly and coordinated developments of financial ecosystem. Different from existing literatures which simply introduce the financial ecosystem theory itself, this paper make contribution to provide in-depth analysis and policy advices for the operational efficiency and coordinated developments of regional financial ecosystem.Firstly, the importance and practical significance of financial ecosystem's operational efficiency and coordinated developments are explained. Related theories and histories are also reviewed. Chapter 2 begins with the third generation of financial development theory and financial ecosystem theory. The theoretical basis, concepts and research status are presented. With different research scopes, the research subject could be classified as the relationship among financial ecology, financial development and economic development, as well as the evaluation model of financial ecosystem. The analytical results are concluded from 4 sectors, namely the interaction relationship between financial ecology and financial development, the interaction relationship between financial ecology and economic development, different judgment subjects and different judgment methods.Secondly, the body of China financial ecosystem is statistically described. Chapter 3 analyzes body of China financial ecosystems for 29 provinces, from the prospectors of both financial institutions and financial markets while in different regions and time periods. Results suggest that the east takes the leading position in most indicators, including scale and developing speed. East, Middle and West are separated by these indicators and Beijing, Shanghai and Guangzhou have dominant advantages and take the top three places. On the other hand, Qinghai, Ningxia and Guizhou are the last three ones due to their weakness in factor endowments.Moreover, the competitiveness and the degree of development of regional financial ecological environment and financial ecological body have been assessed. Chapter 4 builds the index system for regional financial ecosystem. The indicators include 43 sub-indices so that it could measure the features of competitiveness of 29 provinces in detailed, accurate and scientific manners. Result shows that most mature financial ecological environment and financial ecological body are gathered in eastern regions. Beijing, Shanghai and Guangzhou are the top tiers. On the other hand, inferior ones are usually located in western regions. Qinghai, Ningxia and Guizhou are at the bottom. Middle regions appear to have more potential in future growth. Chapter 5 adopts coupled coordination degree index and analyzes the degree of coordinated developments in financial ecosystem. We find that during the periods from 1996 to 2008, the coordination of 29 financial ecosystems are not only unbalanced but also keep in different developing paths. Yet the overall situation is in good condition,8 of them gain the points above 0.6 which means moderate coordinated development. Only 4 provinces have the points below 0.2 and in serious deviation from coordinated state.Finally, the operational efficiency of dynamic and static regional financial ecosystem is measured and the influencing factors are quantized. Chapter 6 uses DEA method and malmquist index based models to estimate the operational efficiency of the regional financial ecosystem. Results suggest that even through most of the provinces do not have operational efficient financial ecosystem, but according with the acceleration in technical change of system, the situation is improving in all the regions and especially in recent years. Chapter 7 combines the above results with panel data set for 29 provinces from 1996 to 2008 and finds the strength and direction of impacts. Results indicate that factors as the level of financial developments, the degree of opening-up, the level of education and the status of economic developments could explain the difference in operational efficiency of regional financial ecosystem well. But the factors play a different role in short-term and long term models. On the base of the above findings, Chapter 8 analyzes the current circumstance and problems in China financial ecosystem's operational environment and coordinated development, as well as giving corresponding political suggestions.