Research On Regional Financial Problems To The Revitalization Of Northeast China

Under the condition of modern market economy, capital is an important factor determining the development level and speed of economy in a country or region. Finance is the channel of capital accumulation and intermediation. The development level of financial decides the liquidity level of capital and the allocation efficiency of resources at a region. Therefore, it can be said that Finance is the core of the modern market economy. At present, our country is implementing the revitalization strategy of the old industrial base in northeast China. As this strategy unfolded gradually, the revitalization of the old industrial base in northeast China needs more and more strong financial support. Theory and Practice have proved that the regional financial is an important force to promote regional economic development. However, the level of financial development in the northeast region remaines relatively stagnant. And it is still lagging far behind the developed coastal areas. This has seriously hampered further economic development in the northeastern region. How to improve the level of financial development in the northeast region is a major problem to be solved in the revitalization of the old industrial bases in northeast China. In order to improve the level of financial development in the northeast region, we should have full awareness of the development status quo firstly, and understand the reasons behind their backwardness deeply.Based on this, this paper takes the theory of financial development and the theory of regional financial as theoretical foundation, reveals the backward status of financial development in the northeastern region by comparison. Then analyzes the reasons for its backwardness from four dimensions and finally proposes some relevant policy recommendations on the basis of previous text. The aim is to enhance the level of financial development in the northeast region, and give better play to the role of the regional financial in promoting economic development in northeastern region.This paper is divided into five parts:The first part elaborates the theory of financial development and the theory of regional financial. The expounding on the theory of financial development includes the theory of financial structure,financial represion,financial deepening as well as financial constraintment. The expounding on the theory of regional financial theory includes the definition of regional financial,the studying scope of the theory of regional financial as well as the research results of domestic scholars on China's regional financial.The second part uses endogenous growth model to analyze the relationship between financial development and economic growth. Then elaborates the major role of regional financial in the regional economic development. The relationship between financial development and economic growth is mutually reinforcing, and mutually constraining. Financial development is conducive to promote economic growth. At the same time, the level of financial development is closely linked to the level of economic development.The third part compares the level of financial development between the Northeast region and the Yangtze River Delta region,the Pearl River Delta region and the Bohai round region. The indicators used relate to the financial interrelated ratio,the level of the insurance industry,financial structure and the development level of the stock market, the overall conclusion is that the level of financial development in the northeastern region is still very low and the financial contribution to economy is small. Either on the financial size or growth rate, the gap between the Northeast region and the other three major economic regions is very big. And the gap is still expanding.Part IV analyzes the reasons for the backward of financial development in the northeastern region from four aspects: the micro-economic mainstay, the state's macroeconomic policies, the regional credit environment and institution. At the micro-economic mainstay level, the low income of residents in northeastern region leads to its low saving rate and bad power of capital accumulation. Low revenue on net assets of listed corporations in northeast region reflects that the yield rate on capital is low in that region. And the attraction to foreign capital is weak. From the analysis of the transformation ratio from saving to investment, we can find out that a large amount of capital outflows from the northeastern region seriously. On the macroeconomic policy level, the highly unified monetary policy China is implementing is also a indirect cause contributing to the low level of financial development in the northeastern region. On the regional credit environment level, because of the relatively poor credit environment in the northeastern region, its credit scale is under strict control. And the wish of the joint-stock commercial banks and foreign banks and other financial institutions to expand their business in the region is receded. As a result, the competition in the financial market is deficient and efficiency is low. On the institution level, by the impact of the planned economic system for a long time, the northeast region governments have implemented a lot of inappropriate intervention on the financial operation. This has leaded to low efficiency in the allocation of credit resources and formed a huge amount of bad assets.Part V proposes some relevant policy recommendations on the basis of previous text. Firstly, strengthening the construction of credit system in the northeastern region, improving the regional financial environment. Possible measures are strengthening legislation and law enforcement in the area of credit and building credit information sharing platform. Secondly, implementing differentiated regional financial policies on the basis of the status quo of Northeastern region. Thirdly, changing the government functions in the financial system. Fourthly, building the regional financial center of Northeastern region in Dalian City so as to make integration of regional financial resources and promote the whole level of regional financial development.