The Construction Of Financial Center For A Country

Many countries are attracted by the title of international financial center. After all, in the late 300 years, only New York, London and Tokyo have got to the peak. International financial center is the region where various financial institutions gather and different financial activities occur, once a country has established a financial center, it will occupy a leading position in this era of financial globalization, which will facilitate its financial activities and promote its development in other fields. Conforming to this trend, China published papers presenting the target of the establishment of international financial center in 2009, which meant that China also joined the fierce competition.For the construction of financial center, we are more concerned about which factors will impact the establishment of financial center. Here, this paper is discussed in two cases. One is the analysis of the factors affecting international financial center, the other is the analysis of those affecting regional financial center. The paper uses the panel data of 188 countries in the world from 1980 to 2009 and does empirical analysis of the data by using linear probability fixed effect model, probit model and logit model. In terms of factors, this paper selects economic growth, real per capita GDP, dependence on foreign trade, financial openness, and financial development as fundamental indicators. In order to further test the robustness of the analysis this paper also adds quality of institution and legal origin as the additional indicators.The results indicate that economic growth doesn’t have significant influence, but real per capita GDP has some positive impact on regional financial center. The impact of the degree of financial openness and financial development is very significant and robust. The degree of dependence on foreign trade has a slight negative affect on the establishment of international financial center. However, the quality of institutions has a significant positive impact on the construction of regional financial center. For our country, the key to building international or regional financial center lies in the deepening of domestic financial markets and the openness of capital account.