The Influence Of International Financial Crisis On The Regional Economy In Coastal Areas Of China

The subprime mortgage crisis emerged in Feb.2007 since the second largest American subprime mortgage institution proclaimed a deficit in the forth quarter of 2006.And then,it broke out in the securities markets and a lot of institutional investment suffered great loss and some of them became bankrupt especially in the second half of 2008.The physical economy also suffered as a result of credit reduction.Finally,the crisis spread in the global economy and turned to be an international financial crisis.The influence of international financial crisis on the regional economy in the coastal areas of China had revealed since Aug.2008 and became increasing intense after Nov.2008.There are two purposes of this paper.The first is to analyze the influences of the crisis on Sunan pattern,Wenzhou pattern,Dongguan pattern and Jinjiang pattern which are four representative patterns of regional outward-oriented economy in China.The second is to inquire the reason why the four patterns suffered different influences.This paper is organized as follows.Firstly,it reviews several financial crises in history and demonstrates the process and characteristics of subprime mortgage crisis as a comparison.Secondly,it introduces the basic situations of the four patterns of regional economy in coastal areas of China.Thirdly,it illustrates the influences of the international financial crisis on the four patterns respectively through empirical study and the monthly statistics on trade,FDI and CPI etc.from Jan.2007 to Feb.2009.Finally,some policy advices will be put forward.