Research On Western Financial Center Construction With Governmental Promotion

At the present time, there exits a hot upsurge of western financial centre construction promoted actively by western local governments in China.As most of financial centers in China according to the cause of formation, western financial centre construction particularly belongs to government-dominant model. Government promotions have important contributions and the competition of financial center construction is largely involving into the competition between local governments. Therefore, in the governments promoting western financial center construction, this research is of great significance.This study adopts progressive study ideas, and use game analysis and empirical analysis (factor analysis and cluster analysis) method for the government behavioral motivation and restraint conditions, mechanism, ability and so on, the purpose is to provide necessary theoretical reference for policymakers for financial center construction. This research includes six chapters.Chapter 1 is the preface, including the research background and its significance, research methods, study thoughts, and structure arrangement.Chapter 2 is the literature review and theoretical basis.On train of literature reviews on financial center construction,Although financial center theory have lots of contributions to be absorbed,governmental actions and its effects in financial centre construction can not be paid more attention and its research approach must be expanded. Based on non-financial center literature reviews about governmental actions, differences with research contents can not deny significance of its method being used as a source of reference.This study is based on the financial resources theory, public choice theory, rent-seeking theory and government performance theory. Chapter 3 is about power and constraints of western governmental promotion on financial center construction.The purpose of the research is to find power and constraints of western governmental promotion on financial center construction, which may be foundation of local governments to promote financial center construction and prerequisite for the thorough analysis of government behavior. As a conclusion, governmental motor factors include local governmental demands, financial resources competition, local economic development, minor enterprise financing problem, governmental guarantor, tertiary-industry development, government official being create ,set rent or seek for rent and so on. On the other hand, constraint conditions consist of fiscal policy, financial policy, finance and taxation system or institution, government performance system.Chapter 4 is about governmental behavior to promote financial center construction. Based on analysis the competitive state of local government, we analysis two-game between in-step local governments , two-game between local government and central government, two-game local government and market forces (such as bank), triangular participants rent-seeking game including local government , local government officials, and participants seeking for rent. we use game models with prisoner predicament ,Trust acting relation ,Haggle over price relation.Research shows that western local governments have performance and competitive with double identity, which may determine the inevitability of local government to participate in the activities of financial center construction, but because possible nonperformance behavior may appear between the in-step local governments, because the risk of starting is possible in financial center construction, because possible rent-seeking or corruption behavior etc may happen, local governments promotion may have r has ,both positive and negative, double meaning, therefore, the central government should seek an effective incentive mechanism, in order to ensure the financial center construction of scientific, orderly and standard operation. Chapter 5 is to discuss about"combine government with market to promote financial center construction".Firstly, we use factor analysis and cluster analysis to demonstrate about western financial resource and fiscal resource including 12 provinces in western China. There are more difference in western region and three cities,Chengdu,Chongqing,Xian,are the most possible and potential candidates of financial center cities. But the true meaningful western financial center has been not emerging yet, so it is shoulder heavy responsibilities for us to breed financial center to take shape.Then, we discuss the western financial market structure empirically. Results show that the local government's financial market exist structural soft rib, it makes difficulty of market forces combined western local government forces to promote financial center construction greatly strengthened.Chapter 6 is the government to promote the financial center construction of the target model and policy recommendations.Firstly, we put forward the orientation of financial center construction to step in and target mode should be devoted to the financial center of multi-level marketing system construction, only in this way can we truly accords with western region economic and financial development and fundamental interests.Secondly, we, for the central and local governments, put forward concrete different proposals respectively.Finally, we briefly analyzed the limitations of the study and other problems to be solved.