A Study On The Impact Of Financial Efficiency On The Regional Economic Development Differences

With the economic development and social progress,the problem of differences in regional economic development has become more and more serious.For our country,the difference in regional economic development between the east and the west is the most typical manifestation of this problem.Finance is the core of China's modern economy.To maintain sustained and healthy economic development,we must ensure the quality of financial development,and the quality of financial development is also expressed in the form of financial efficiency.Whether financial efficiency will affect the differences in regional economic development in China and how this effect works.This article will take this question as an argument,based on reference to relevant literature and empirical analysis,to carry out research on this argument.On the basis of reading a large number of previous literatures,at first,this article makes a comparative analysis of relevant data from the four aspects of the overall economic level,people's lives,infrastructure construction,and urbanization level.In principle,this article establishes an indicator system for the development of the east and the west,and then based on the 1993-2016 provincial-level relevant data,through the method of dimensionality reduction,studies the difference in economic development between the east and the west,and obtains the difference coefficient of the comprehensive regional economic development between the east and the west.Finally came to a conclusion that the economic development gap between the east and the west is constantly expanding.Then on the basis of the coefficient of economic development difference between the east and the west,using financial efficiency as the starting point and using VAR and VECM models,the relationship between the economic development difference between the east and the west and financial efficiency is discussed.At first,through the Johansen cointegration test,it is concluded that there is a long-term stable relationship between financial efficiency and related variables of regional economic development differences.Secondly,according to the impulse response and variance decomposition,financial efficiency has an important one-way effect on the regional economic development differences between the east and the west.In the early stage,financial efficiency will cause the regional economic development differences to shrink,but in the long run it will lead to regional economic development differences.The conversion rate of savings to investment plays the most important role.