Research About Financial Efficiency And Two-gap Paradox

How to gain a high level of investment based on the low level saving, it is a important problem for the developing countries to achieve economic growth,"two-gap"model gives a perfect solution. The practice of Chinese introducing foreign investment and the theory of"two-gap"model are departed after the reform and opening-up. In the case of sufficient domestic savings, there are still a lot of foreign capital influxes, saving gap and foreign exchange gap became"double overflow", the reasons for this phenomenon are thought-provoking.Two-gap paradox is affected by how to use foreign investment,the transformation efficiency for savings to investment, and the financial resources'rational allocation in various sectors in the economy. The above factors belong to the scope of financial efficiency. Therefore, thinking about financial efficiency as an important cause, it is divided into economic indicators and financial indicators. As a comprehensive index, financial indicators can be further divided into the overall financial indicators, indicators of financial intermediaries, direct financial indicators and so on.Construct the indicator of deviated from two-gap, use datas which come from 1985-2008 to theoretical analysis with the financial-related rate, the degree of monetary indicators, measurable indicators of financial stability, the usage of efficiency indicators for banks'funds, monetary indicators of the currency structure, we can give the conclusion that the degree of the deviated from two-gap is the most affected by the measurable indicators of financial stability. Building panel data econometric model which includes 31 provinces and cities, the result shows that the measurable indicators of financial stability has positive meaning to the indicator of deviated from two-gap, and the improvement of the usage of efficiency indicators for banks'funds can not be ignored. So, not only to improve our country's financial efficiency, to enhance the transmission mechanism of financial markets, to optimize the efficiency of financial institutions but also to increase Chinese financial stability and banking efficiency in the use of funds, then we can ease the degree of expanding from the department of"two-gap"model, and use the domestic funds to construct our economy.