The Comparative Study Of The Financial System For Free Trade Zone

The State Council ratified the Framework Plan for the China (Shanghai) Free Trade Zone. There are two points of financial field in it. One is accelerating the innovation of financial institution, another is strengthening the financial service function. The Further China (Shanghai) free trade zone reform scheme in April mentioned ro further promote the innovation of financial institution. It manifests the value of financial institution innovation and reform in construction of Shanghai Free Trade Zone. The paper analyzes the financial institution of Singapore Free Trade Zone and Hongkong Free Trade Zone and finds the common characteristics of two free trade zone, provides the useful advice for construction of Shanghai Free Trade Zone.This paper reviews the relevant research literature about free trade zones and the financial system, the problems in these studies were analyzed, questions this paper is to study. The second part of the relevant concepts and theories are outlined. The third part compares the financial system of Singapore Free Trade Zone, Hong Kong’s free trade zones and Shanghai free trade zones by the qualitative analysis from the point to the plane.First,an overview of the status of development of each FTA and financial system,then a comprehensive comparison of the financial system in each FTA by the comparison theory of professor White Chin. Quantitative analysis section, constructs a FTA financial system effectiveness evaluation model by Cobb-Douglas utility function and selects the panel data for data processing.The empirical part, the establishment of Hong Kong, Singapore, Japan, Korea and Shanghai panel data from 1991 to 2012, using Eviews software panel data regression for quantitative evaluation of the factors of production, including the impact of the financial elements of the free trade zone of economic growth, and Positive results from both vertical and horizontal angles were analyzed.Finally, based on the previous chapter, from the perspective of the financial system utility to discuss the financial reform of Shanghai FTA.