The Influence Analysis Of Financial Efficiency To The Regional Economy Convergence

The theory of Regional Economic Growth Convergence has been always an important issue in economics. On this ground, it is great importance for analyzing the present economic development and predicting its future trends by determining the issue of convergence or divergence, the speed of convergence and the cause of convergence in certain region.In many kinds of factors on affecting the economic growth, the finance efficiency is a key attribute. The financial efficiency's enhancement can cause the financial resources to flow to an efficient higher economic entity, reduce the cost effectively, increase output, thus contributing to the overall economic efficiency.Nowadays, the difference of growth among the regions has been keeping widening, with convergence to the regional economic growth, what influence the local financial efficiency can have? This thesis proceeds from financial efficiency factor, study the relation between the financial efficiency factor and regional economy disappear emphatically. In this paper, we select two indicators, which could reflect macroscopic finance efficiency—loan-to-deposit ratio (SLR) and financial-related ratio (FIR). By the data of 1996-2006 and 30 provinces (city) in china, we study the influence of financial efficiency to the regional economy convergence emphatically. Based on this, we divide into 1996-2001,2001-2006 two time intervals and eastern, central and western regions to carry on the comparative analysis. The main conclusions are:In general, the financial efficiency plays a converging role to the economical growth in nationwide scale. Joins condition variable SLR, causes the conditional convergence between the total time period 1996-2006 and two time intervals. Joins condition variable FIR, causes the conditional convergence in total time period 1996-2006 and 1996-2001, but displays conditional divergence in period 1996-2006.Two financial efficiency indicators mainly play the role of narrowing the economic disparity, but to the eastern, central and western regions have the different situation of convergence or divergence respectively. In the period of 1996-2006, joins condition variable FIR, can reduce the speed of divergence in the eastern and western regions, but accelerate the speed of divergence in the central regions.