The Regional Comparative Study Of The Credit Funds Allocation Efficiency Of China

As the core of economic resources, the allocation efficiency of financialresources impacts the efficient use of other economic resources directly. Thus, theinterregional and inner-regional allocation efficiency plays an important role in theimprovement of the overall economic resources efficiency. Our financial resources isled by the banking sector, bank credit dominate in not only the total proportion ofthe contribution to the national economy but also the proportion of the financialresources. As the credit funds is the core resources in the development of China’sregional economy, evaluation of the degree of configuration of credit funds indifferent regions is particularly important. And the research and analysis of thedifferent reasons resulted in different credit capital allocation efficiency will alsopoint out the policy direction in improving the efficiency of the credit fundsallocation efficiency.By drawing on existing theoretical and practical study, this paper analyzes thegeneral theory of resource efficiency and District Financing. Then, based on theanalysis of regional configuration status of China’s credit funds, we choose themethod of the equal marginal productivity, sampled with Chinese31regions and1985-2009data for the estimation of the credit funds allocation efficiency,then,wemade a horizontal comparison analysis. The result showed that the overall regionalallocation efficiency of China’s credit funds showing a steady upward trend, in theregional level. The paper further explores the reasons of the different regional creditfunds allocation efficiency, and builds a multiple regression model to furtheranalysis of the factors in year2008and2009that affect the efficiency of theallocation of credit funds in China. Finally, based on previous theoretical andempirical analysis, the paper proposed several policy recommendations to improvethe efficiency: strengthen government guidance and service functions, weakeningthe direct intervention of the credit markets; reduce the concentration of the creditmarkets, accelerate advancing the structural reform of the state-owned commercialbanks; accelerate the relaxation of banking access regulatory commitments, and create a competitive credit market environment; accelerate the process of financialmarkets in China market, expand financing channels.