Difference Analysis Of The Regional Financial Development In Guangdong Province

With the rapid economic development, regional economic development differences arerowing widening of Guangdong Province. As the core of modern economy, finance has somefunctions which great impetus to economic growth,such as mobilize savings, reduce risk、allocation of resources and so on. The expansion of regional financial developmentdifferences affects the level of regional economic development differences in GuangdongProvince. So the differences and convergence analysis of regional financial development ofGuangdong is very important and necessary, that has a good theoretical and practicalsignificance. Base on the differences analysis of the regional financial development ofGuangdong Province on current situation, to test the convergence of the regional financialdevelopment and in Guangdong Province using the economic development convergencetheory. At the same, I will look for the impact factors on the theoretical and realistic, for thepurpose of providing some policy and suggestions, which can narrow the GuangdongProvince regional financial gap.According to the paper analysis, the non-equilibrium characteristic of the regional financialdevelopment is very obvious in Guangdong Province, which has faster market process andhigher degree of openness. And financial development of the Pearl River Delta region is muchhigher than the rest of Guangdong. In2000-2010, there’s not α convergence and absolute βconvergence of regional financial development on Guangdong Province. And the absolute gapchange of the regional financial in general first smooth， then expand and the last narrowingtrend. And developed regional financial development is faster than the less developed regions,showing a "rich get richer, the poor are getting poorer" the Matthew effect. Difference in PRDis over than the differences in the other regions. It becomes the dominant part of the internaldifferences in the Guangdong region as well as the overall differences. At the same time, thereis conditional β convergence of the financial development of the Guangdong region. And themountain of northern Guangdong has a club convergence, where the financial development isgradually converge to the steady state.