Measurement Of Financial Development Quality In Shanghai

Finance is the core of modern economic operation.Chinese financial industry continues to expand at record pace nearly four decades after Deng Xiaoping's opening-up policy.However,a doubling in size of the financial industry also causes many problems such as “lack of quality”,stressing the importance of promoting the quality of financial development.The high-quality development of financial industry is not only a necessary requirement for improving sustainable economic development in the new era,but also an inevitable choice to follow the law of financial development.Shanghai,as the financial center of China,will play a significant role in building a modern financial system and a multi-level developed capital market in the future.In this context,it is of vital importance to monitor the quality of the development of finance industry in Shanghai and make some recommendations based on the observations.On the basis of previous research theories and methods,this paper focuses on the input-output efficiency of the financial industry and also the establishment and application of a new quality measurement system that can be used to measure the quality of financial industry development.This paper is divided into four parts.At first,the concepts and methods of financial development quality measurement system adopted in this paper will be discussed in the Chapter 1 and Chapter 2.Seccondly,the production function,which is a research tool,will be introduced.After that,the development of banking,insurance and securities industry in Shanghai in recent years will be measured and analyzed with the help of C-D production function and Trans-Log production function.Moreover,the same method will be applied to measure the development quality of the overall financial industry in Shanghai,and the result will be compared with the development quality of Beijing and Shenzhen.In the last part of this paper,the recommendations and suggestions for improving the development quality of Shanghai financial industry in the aspects of output elasticity and factor contribution will be given.