Empirical Study Of Financial Development In Tibet

Since the peaceful liberation of Tibet, especially since the reform and opening up, along with the strong and long-term support for the development of Tibet from the Central Government, Tibet's financial industry has made a very important achievement in the development. This paper, based on the historical data of Tibet financial development, economic growth, urban-rural income gap and enterprise performance, makes a deep exposition in Tibet financial development which is the main purpose of this study. Then, this paper illustrates the realistic significance of this study from multiple angles, such as Tibet financial reform, relationships between economic growth and income distribution, Tibet financial development process in the future. On the basis of the above researches, this article makes reviews of the current literatures from the angles of financial development and economic growth, financial development and urban-rural income gap, financial development and enterprise performance. Based on the statistical descriptions about present situation of Tibet finance development, this paper adopts the empirical research methods, concluding the VAR model and fixed effect panel data model, and discuses Tibet financial development empirically with the combination of macro economic growth and income distribution and micro enterprise performance. The main conclusions of the article are:(i) Through the investigation of current situation of Tibet financial development, this article draws a conclusion that from the view of the temporal evolution, whether it is from the related financial ratios, financial development efficiency of financial development, or from the financial market index, the financial industry in Tibet has achieved great success; from the view of comparison with other four autonomous regions, the marketization level of financial industry in Tibet is relatively lower than others, and there are many problems, such as unsound financial system, singleness of financial business, imperfect financial ecological environment. The construction of financial market in Tibet has a lot to do.(ii) Based on Tibet financial development, economic growth, investment in fixed assets, total labor input data since 1959, this article adopts VAR model method to explore the relationship between financial development and economic growth in Tibet, in order to examine the performance problem of Tibet financial development from the macroeconomic perspective. The empirical results show that there is a significant positive correlation between the development of Tibet's financial and economic growth in Tibet in long term, and when Tibet financial development increase a unit, the economic growth will be promoted 0.1809 units. Granger causality test shows that Tibet financial development will promote the economic growth of Tibet unidirectionally. The results of impulse response function and variance decomposition analysis also confirm that the promotion effect of financial development on economic growth in Tibet. Robust test results show the relationship between Tibet financial development and economic growth of Tibet has the robustness.(?) Based on the correlation data of Tibet financial development and urban rural income level from 1978 to 2012, by the VAR empirical model, this paper makes an empirical test of the relationship between financial development and urban-rural income gap, and examines the performance of the income distribution problem of financial development from a macro perspective. The empirical results show that:under the background of the increasing urban-rural income gap, in the long run, Tibet's financial development has not been able to play a role in the effect of narrowing the urban-rural income gap; on the contrary the financial development significantly increases urban-rural income gap of Tibet. When financial development increases one unit, the urban-rural income gap of Tibet will increases 0.0208 units. Granger causality test results show that financial development is the reasons for the change of urban-rural income gap, and financial development has one-way influence on the urban-rural income gap. The reason which causes the negative effect on the relative income gap between urban and rural of financial development is that at present Tibet financial market is not perfect and the level and efficiency of the financial services is not high, i.e. showing a certain degree of "financial repression" phenomenon. Variance decomposition analysis and the impulse response function analysis also confirmed the results that financial development has negative impact on the income gap between urban and rural is significant; furthermore, this paper adopts the urban-rural income ratio to measure the urban-rural income gap, financial institutions loan deposit ratio to measure of financial development, and reconstructs VAR system to conduct a robust test. Robust test results show a positive correlation, one-way relationship between financial development and urban-rural income gap, which verifies the robustness of model.(?) Using the data of the large scale industrial enterprises in Tibet from 1998 to 2007 as the research object, adopting the fixed effect panel data model analysis method, this article makes an empirical examination of the relationship between financial development and enterprise performance. The results show that as following:First, financial development can promote significantly promote enterprise performance for the whole. For example, the estimated results which use rate of return on total assets to measure enterprise performance, financial development related ratios to measure financial development show that the estimated coefficients of the financial development is 0.0823, and is significant at the 1% significance level, which indicate that one unit increasing in Tibet financial development will promote the 0.0823 units in enterprise performance; further, this paper use the net assets income rate to measure business performance, and the efficiency of financial development, financial liberalization index to measure financial development, in order to verify the relationship between financial development and enterprise performance. All of the classification estimation results confirm that financial development can greatly promote the enterprise performance ascension, and the results are robust.Secondly, in order to study the relationship between financial development and enterprise performance whether changes with the differences of industry or ownership, the article chooses the mining industry, food and tobacco industry, building materials industry, machinery industry, the waste of resources and waste materials recycling processing industry and water and electricity industry to make industry classification estimation as an example, and draw that the relationship between financial development and enterprise performance is still very robust, and financial development can improve enterprise performance; however, the promotion effect of significant is different. Further, all samples are divided into state-owned enterprises, private enterprises and other types of enterprises, then the classification estimation results show that, for the state-owned enterprises, private enterprises and other types of enterprises, financial development all can significantly enhance firm performance; however, the financial development promote the improvement of business performance show a significant differences:the effect of financial development for the performance enhance the largest for private enterprises, followed by the foreign investment enterprises, state-owned enterprises minimum.(?) The study of the future path of Tibet financial development indicates that it is relatively difficult to develop the financial industry in Tibet which has a weak economic base. The future development of Tibet financial industry should follows the following principles:firstly, developing with the perspective of the overall national situation; secondly according to the reality; thirdly, the government leading; fourthly, combining inside and outside, paying attention to the internal cause; fifthly, give consideration to both stability and development; sixthly, development can not be accomplished overnight. Tibet financial development in future should be from five aspects consisting of the macro policy, institution, mechanism, regulation and the Internet finance to build, especially should focus on development opportunities and risks of Internet finance. The main characteristics of Tibet financial development path is closely around stability and development, and constantly consolidate the dominant position of state-owned commercial banks in the process of development in Tibet financial development, and constantly improve the Tibet financial market, sound all kinds of main body of financial market, and build regional financial institutions with the characteristics of Tibet, and form a benign cycle of the financial market development road with the external assistance and Tibet's own efforts.The innovation of this article has three aspects as follows:First of all, the thesis topic and the research angle are novel. This article selects one of the ethnic autonomous areas in China-Tibet-as the research object, and study its financial development achievements, problems and future development path under the socialist market economy system. Related researches of this paper have an important academic value in promoting Tibet's economic and social steady and rapid development, maintaining the harmony of all ethnic groups and the stability of the border areas. In addition, the research perspective is novel, and is different with the domestic research on financial development train of thought. This paper not only from the macro level -- economic growth, income distribution, but also from the perspective of micro level-enterprise performance, examines the problem of Tibet financial development from multi angle, multi-level, and draws a very important conclusion.Secondly, the study results of the thesis have higher application value. Under the socialist market economy system, in order to promote the development of economy, the finance is the core, especially for ethnic minority areas. Financial development is an important means to revitalize the economy, and the article draws a conclusion that the heavy relationship between financial development and economic growth, income distribution in Tibet, enterprise performance, and puts forward the future development path of Tibet finance. Relevant conclusions of this paper not only can check the actual effect of support policy from the Central Government to Tibet financial industry, and also can provide important reference for the Central Government to formulate future strategy of Tibet financial development.Thirdly, the data is novel. In the measurement of key variable -financial development, in addition to the traditional financial institutions deposit and loan index, also based on a more comprehensive and objective data to metric China provinces of financial market and the financial industry competition, this paper reexamines the relative level of Tibet financial development, which makes the conclusion of this study more objective.