China Regional Financial Differences And Spatial Econometric Analysis

Two aspects concerning regional financial structure and development in China were studied in this dissertation. Firstly, the characteristics of the distribution of regional financial system were reviewed. Along with that, the regularities reflected in those characteristics were also discovered. Secondly, the interaction between different regional financial systems was measured using spatial econometric method. The magnitudes and properties of major factors'spatial spill over effect on regional financial system were captured as the parameters in our model. The logic is that the first part of the study demonstrates regularities of our regional financial system in macro level while the second part of the study further explorers the details of regional interaction in micro level.The characteristics of the distribution of regional financial system were observed from three angles. First, in physical space, Moran's I and local Moran's I index indicates global positive spatial dependence in our regional financial system. Moreover, the time series of Moran's I index shows that the positive spatial dependence of our regional financial system had experienced a fast increase during 2002-2004. Currently it is approximately 0.4 and relatively stable. This means that the basic layout of the regional financial system in our nation is now mature.In Rank-Size space, the size distribution of our regional financial system does not satisfy the Zipf's Law. However, its Pareto coefficient is steadily approaching to one showing that our regional financial system is becoming more and more developed in Rank-Size sense.Finally, in time domain, our country's regional financial system also displays regularity. From 1997-2009, the regional financial system in the four economic plats had showed remarkable allometric growth pattern. Although the financial system in different region grew at different rate, the proportional coefficient between different region's growth rate remained constant.All those regularities mentioned above proved that as a complex system, regional financial system has its own stability and evolution law. Hence there must exist dynamic balance between the interacting elements within the system. In order to learn the details of the influence of major factors exerting on the regional financial system, a spatial econometric model was applied. The result showed that there is a economic vicinity area in our nation's regional economic and financial system. Each influencing factors for regional financial system will act differently when the distance is changed. In other word, the spatial spill over effect changes as the distance between the subjects changes. However, in or out of the vicinity area, there both exist balances among different factors.