The Study On Provincial Financial Liberalization Changes Of China And The Influence To Macroeconomic

After 30 years of market-oriented reforms, China has preliminarily established a market economic system. As we all know, the basic characteristics of the market economy is the free movement of factors of production, factors, especially the degree of free movement of capital determine the integrity of the market economy. Financial development is a basic protection of free movement of capital. Financial market, also known as the financial liberalization, it changes a country's financial operation mechanism through the reform of the financial system. As the financial market can not only improve the efficiency of financial operations, but it will also bring some stability risks to the financial system , the study about measure of financial market and its impact on macroeconomy is particularly important to China, as a different country from other transition econnomies.In this paper, under the background of China's economic development and financial reform after reform and opening up, using empirical econometric methods to study the process of China's financial liberalization in the following aspects :First, the building completes the 31 regions of China(including all provinces, municipalities and autonomous regions)1990-2007 relative index of the financial liberalization, including the financial intermediary liberalization, government action market reform, financial market liberalization, financial opening 4 sub-indices and the total index. From the horizontal and vertical by comparing the two 18-year regional financial market development, indicating the relative level of financial market regional differences. Overall, the level of regional financial markets are improving.The relative level of financial liberalization of eastern region is significantly higher than central region and western region. The gap of the level of financial liberalization between eastern and western regions expands, but the gap between central and Western regions is narrowing, and the level of financial liberalization of some Western regions is even higher than the central level.Second, using the 1990-2007 relative index of regional financial liberalization to build panel data sets. Through spatial econometric methods by using MATLAB, the empirical survey has been carried on to explore the relationship between the relative level of regional financial liberalization and investment. The results show that there is spatial correlation between the relative level of regional financial liberalization and the investment. Then, the well-established financial liberalization data is used to construct section database 2007 of various regions of China, and then the study of the spatial analysis finds out the influencing factors of the farmer`s income and it also analyses the impact on reducing poverty and promoting the farmer`s income from regional financial liberalization, the empirical results show the existence of such effects as spatial effect.Finally, to sum up the full text analysis, and propose policy recommendations.