An Empirical Analysis On China Regional Financial Interrelation Ratios Based On Neutral Network

In recent years, as China's economy gradually integrated into the background of economic globalization and the opening up of financial industry obviously accelerated, China's financial industry is developing forward to globalization and liberalization. Finance is the core of modern economy. The depth and breadth of financial resources'development act as key roles in restricting the economic growth and development of a region. It is an important problem that financial industry's development and its interrelationship with economic growth.However, China's regional financial development trends to unbalance. There are great differences of financial development and growth patterns among different provinces. China's regional financial development, which has strong Chinese characteristics, becomes an important research direction gradually. Most empirical studies use financial interrelation ratios as an important indicator. Therefore, this paper chooses China's regional financial interrelation ratios as the object of the study. The development of China's regional financial interrelation ratios is a complicated problem, involving many different factors. Until now, there are still no common opinions about its related factors and influence modes in academics. Neutral network is an intelligent method to process data and it has great superiority in solving nonlinear problems that other methods do not have. A simple three-layer BP network using simple nonlinear transfer functions can approximate any nonlinear functions with any precision. Meanwhile, neutral network has many advantages such as auto-adaptable and fault-tolerant abilities.The paper analyzes China's regional financial interrelation rations based on the neutral network model. It chooses each province as the object of the study, builds neutral network models with the same structure but different parameters, and uses parameter perturbation method to analyze the results and compares the effects of different factors. At last, the paper sorts the provinces for convenience of making comparison and reference among different provinces. The study proposes that GDP may not definitely have positive impact on regional financial interrelation ratios. It depends on the changes of the times and different provinces. The impact can be positive, also can be negative, and can transform from positive to negative. By the same reasoning, other factors, such as investment, may also have various impact patterns, and some factor's proportion is even larger than GDP in some provinces. Besides, developing patterns can be different among the provinces which have similar financial development level. The analysis results show that we should have a dynamic view of the financial development of provinces, not only learn from the history, but also from other provinces'development patterns.