Research On The Spatial Correlation Of China’s Regional Financial Development And Its Influence Factors

As the core of modern economy, Finance is the central nervous of the entire social capital movement, as well as endogenous variable and core element to promote economic growth. The unbalance and regional differences in the spatial distribution of financial development level is also an important factor of regional economic development differences. The resolution of regional financial development gap issue has become an important way to promote the coordinated development of economic and financial area. Current scholars’ research shows that the regional financial development of our country existing regional interaction and spatial correlation phenomenon. This paper introduces the social network analysis method to study the phenomenon of interprovincial spatial association in our country from a global perspective, which is of great significance to solve the problem of regional financial disparity and promote coordinated development of regional finance.This paper introduces the related theoretical basis of regional financial development space in China, and analyzes the formation mechanism of regional financial development space correlation from multiple dimensions of the accumulative effect, spillover effect, convergence effect and its dynamic evolution process. On the basis of theoretical analysis, this paper builds the space correlation network of regional financial development in China, analyzes the network characteristics and classification of block model using social network analysis method. Then it uses the method of QAP to analyze the influencing factors of spatial association. There are following findings. First, China’s regional financial development is common on the space correlation. Each province has at least one spatial relationship or more. Network is with strong robustness, but the overall degree of correlation needs to be improved. Second, China’s regional financial development space correlation reflects the obvious spatial spillover effects. Depending on the block model classification, regional financial development of China can be divided into four functional blocks, they are "net benefit plate" "intermediary plate" "bidirectional overflow plate" and "main beneficiary plate", each sector of financial development has its role and function. Third, the level and way of economic development arc the key factors influencing the correlation of regional financial development space. The regions with similar economic foundation or similar industrial structure are more likely producing spatial correlation. In addition, the government behavior, investment and consumption levels have a certain influence on the spatial correlation of regional financial development.Based on the theoretical analysis and empirical results, this paper argues that implementing differentiation positioning for different financial function areas is necessary according to the spatial correlation characteristics of the regional financial development, as well as the different regions in the role of financial development status. And this paper puts forward policy suggestions from two aspects:the central government and local government to promote the regional financial coordinated development. Through regional financial cooperation, multi-level regional financial center construction, regional economic integration to improve the ability of space radiation in financial developed areas, and optimizing local industrial structure as well as the financial ecological environment, encouraging financial innovation to improve the undertake ability of less developed areas, we can effectively promote the coordinated development of regional finance and enhance the overall competitiveness of the financial industry in China.