The Impact Of Financial System Reform On Economic Growth In Wenzhou

In 2012 March 28, Premier Wen Jiabao chaired a State Council executive meeting, the meeting approved the implementation of the Zhejiang Province Wenzhou financial comprehensive reform pilot area overall plan and decided to set up Wenzhou financial comprehensive reform pilot area. By the end of 2015, Wenzhou financial reform has experienced more than 3 years. How the effectiveness of Wenzhou financial reform? Whether to promote the growth of the local economy? Whether there are defects and deficiencies? These are the problems we need to know.We use the financial system reform in March 2012 in Wenzhou City.Use of 34 prefecture level cities in the first quarter of 2005 to the fourth quarter of 2015 to study the impact of financial reform on economic growth in Wenzhou. In this paper, we first use the traditional difference-in-difference method, and find that the conclusion is not significant because of the limitation of sample size. Then, we use the synthetic control method proposed by Abadie et al(2003,2010), using the data of other prefecture level cities to estimate the per capita GDP of Wenzhou. Found Wenzhou financial system reform influence on the economy of Wenzhou City gradually appear later in 2013, to 2015 Wenzhou financial system reform average increase in real per capita GDP of 7.25 percent, relative to the synthesis of Wenzhou, and we validate the this conclusion is robust. At the same time, we use the HCW method proposed by Xiao Zheng et al (2012), found the conclusion get by HCW method are basically same with synthetic control method, by 2015 relative to the fitting of Wenzhou, Wenzhou financial system reform increased the average per capita GDP in Wenzhou 10.94%. In summary, we believe that the effect of financial reform to the real per capita GDP of Wenzhou gradually appeared after 2013. In 2015, relative to the fitting of Wenzhou, the reform of the financial system to improve the average per capita GDP in Wenzhou 7.25- 10.94%.