Regional Financial Development And Regional Economic Gap

The "new normal" have the characters of current slowdown, structural optimization and lower drive change, in order to achieve a smooth transition of economic development we have to make a reasonable income level, and narrow the gap in regional development. But throughout China’s implementation of the regional policy guidelines in the past decade, the effectiveness of the level of balanced regional economic development are very small, the current government is trying to jump out of the pattern of regional planning in the province as a unit, from the rational interaction between regions, proposed the "three strategies" policy. In order to make the new regional policy more significant effect, and adapt to the current economic development environment, changes in the study of regional economic differences and the future trend is very important. In this paper, when the measure of regional economic differences, regional differences are found between the main source of regional economic disparities, during the theoretical analysis, we found there was a significant financial role in the development of the relationship between regional economic disparities, therefore, through empirical analysis of the financial development of the region the difference between the impact of the economic situation,, it is possible to explain and predict certain degree of fluctuation of the regional economic differences.First, using data envelopment analysis DEA Model for financial efficiency indicators, and finance-related rate multiplied, made on behalf of the financial level of the provinces, municipalities and autonomous regions, the development of China’s financial development index. Index results show that the financial situation of regional development and the actual level of regional economic development corresponds to the higher level of real economic development in the region greater financial development index.Secondly, the use of standard deviation and coefficient of variation respectively measure the eight economic zones from 2002 to 2013 changes in the absolute difference and relative differences between regions, depicts the absolute difference between the degree of deviation from the region and the relative differences found between regions the absolute difference over time on the increase and decrease of the relative difference between a steady trend, indicating the absolute difference between the area of future growth will slowly decline. Fluctuations in regional economic disparities in order to carry out a more detailed measurement and analysis, using the formula Theil Theil index decomposition were determined and the total value of regional differences, regional differences in values and value differences within the region, regional differences are found between the total regional differences the main contributor to the overall trend changes and leading regional differences, regional differences in volatility, although the sustained and stable, but after its secondary decomposition, combined with regional convergence analysis found that economic differences within the eastern region over time It goes shrinking, while internal economic disparities Midwest regional preached an increasing trend.Again, based on the above analysis, the financial mechanism of the development impact of the situation based on economic growth, panel data model were established eight economic areas, quantitative and qualitative analysis of the regional financial development’s impact on regional economic growth, the empirical results display, integrated economic area in Northeast, the northern coast of integrated economic area, the eastern coastal economic zone and the southern coast of integrated economic zone finance development exist a positive impact on regional economic growth, and comprehensive Economic Region in the middle reaches of the Yellow River, the middle reaches of the Yangtze River comprehensive Economic Region, northwest comprehensive economic area and the Southwest comprehensive Economic Region are showing negative impact or no significant, indicating that the current model of regional financial development will greatly pull development gap between the regional economy.Finally, based on the conclusions of a comprehensive study on the full text, from the perspective of financial development put forward some policy recommendations for the development of regional economy and reduce regional economic disparities, to expect economic "new normal" phase of the region have access to stable, sustained and effective development of.