The Analysis Of The Interregional Divergence Of Financial Development In Zhejiang Province

Economic growth is a fundamental factor of the development of economy and the improvement of society to a country.The development of finance plays a huge role in promoting the development of economy.Since the Reform and Open Policy,the development of economy and finance enjoys rapid growth..The GDP of Zhejiang province was 12.4 billion Yuan in 1978 and 2148.7 billion Yuan in 2008.GDP per of Zhejiang province was 331.73 Yuan in 1978 and 42214 Yuan in 2008.The average growth rate of GDP and GDP per was 172.3 and 126.3 respectively.The annual growth rate of GDP was 13.2%.But in the wake of the rapid development of economy and finance,the consequent result is the constant increase of the interregional divergence.The GDP ratio between Northeast and Southwest was 1.89 in 1978,while the ratio has increased to 2 in 2008.The ratio of the sum of deposits and loans between Northeast and Southwest was 2.55 in 1995,while the ratio has increased to 2.62 in 2008.As can be seen from the data above,the interregional divergence in the development of economy and finance increases constantly.The increasingly divergence will depress the economic growth of Zhejiang severely.The live problems desire that we must carry on research on the current situation,evolution and convergence of interregional financial divergence during the process of economic and financial development.At the same time,we must put forward practicable ways for problem solving to avoid social risk caused by exaggerated financial and economic divergence.For this purpose,this article analyzes current theoretic documents on the research related to the financial development divergence,sorts out regional financial theory,studies the current situation,evolution and convergence of interregional financial divergence,builds economic-financial development and divergence convergence test equation.Then empirical research is applied on the factor and reason that affects regional financial divergence.Finally,the suggestion that solves the problem of interregional financial divergence is put forward according to theoretical and empirical results.