Research On The Time-varying Influence Of Financial Development On High Quality Economic Development From The Perspective Of Government Intervention

In the context of high-quality economic development,the function of financial market resource allocation to promote high-quality economic development also places higher demands on the development of China’s financial industry.However,the financial market failures caused by the imperfection of China’s financial markets,coupled with the fiscal and promotion pressures faced by local governments after the tax-sharing reform,have given local governments a high degree of enthusiasm to intervene in the allocation of resources in the financial markets.In contrast,the existing literature does not consider the impact of government intervention when exploring the correlation between financial development and quality economic development.In fact,financial development and quality economic development is a dynamic process of change,and financial markets are subject to government intervention,and their relationship with quality economic development may show complex dynamics,and less research has been conducted based on this perspective.Therefore,this thesis takes financial development as the research object and introduces the idea of functional data analysis,aiming to study the time-varying impact of financial development on economic quality development under the perspective of government intervention.The main research of this thesis is divided into the following sections: firstly,on the basis of constructing the comprehensive evaluation system of high-quality economic development,this thesis measures the level of high-quality economic development form the continuous and dynamic perspective within the framework of Functional Data Analysis.Secondly,regional differences in the three core variables of government intervention,financial development and quality economic development are analysed dynamically using a functional Thiel index.Thirdly,a functional linear model is used to study the time-varying impact of financial development on high-quality economic development based on the three dimensions of financial development scale,efficiency and structure.Fourthly,the moderating effect of government intervention is verified using a moderating effect model,and the sample data is further subdivided using functional cluster analysis to test the heterogeneous impact of government intervention based on a sub-sample regression.Finally,based on a panel threshold model to test the threshold effect of government intervention on the impact of financial development on quality economic development within each stage,to further verify the impact of heterogeneity of government intervention.The results show that: firstly,the overall trend of high-quality economic development is on the rise,but the level of high-quality economic development of regional economy is not balanced,there is a large gap between the level of economic quality development in the central and western regions with the eastern regions,the overall distribution pattern is "East > Central > West".Secondly,the regional differences of high-quality development economy mainly come from inter-regional differences,the regional differences in government intervention and financial development mainly come from intra-regional differences,it shows that the degree of government intervention and the level of financial development among provinces within the same region are not qualitative.Thirdly,the scale of financial development,the efficiency of financial development and the structure of financial development have a significant role in promoting high-quality economic development at the national level and in the eastern region,while the role in the central and western regions is not significant.The scale of financial development and the efficiency of financial development show a decreasing trend in promoting high-quality economic development within the national and eastern regions,while the structure of financial development shows an overall increasing trend in high-quality economic development.Fourthly,the moderating effect of government intervention is time-varying and regionally diverse,and its moderating effect on indicators of different dimensions of financial development varies significantly.In addition,the degree of government intervention has a heterogeneous impact.When the degree of direct government intervention is low,financial development can promote high-quality economic development.When the degree of direct government intervention is high,financial development has an inhibitory effect on high-quality economic development.Financial development can significantly promote high-quality economic development when intervention is at a moderate level.In terms of the moderating effect of government intervention,low-level direct government intervention has a positive moderating effect,while high-level direct government intervention has a negative moderating effect;while low-level indirect government intervention has a more obvious negative moderating effect.Fifthly,the impact of financial development on high-quality economic development has a significant government intervention threshold effect,and there are differences in the threshold regression results of direct government intervention and indirect government intervention.The increase in the degree of direct government intervention is not conducive to the performance of financial functions,while the improvement of indirect government intervention is conducive to financial development and high-quality economic development.On the basis of these results,this thesis believes that in response to the regional imbalance of high-quality economic development,we should adhere to the new development concept and actively promote the high-quality coordinated economic development of various provinces.The eastern region should play the role of "leader" in the process of high-quality economic development,while the central and western regions should clarify their own advantages and shortcomings,and adhere to the principle of " suit one’s measures to local conditions" to explore the path of high-quality economic development.Secondly,in view of the regional differences in the impact of financial development on high-quality economic development.On the one hand,we should pay attention to the regional differences in the level of financial development,and continue to expand the types and coverage of financial services in the central and western regions.On the other hand,by improving the information disclosure mechanism,strengthening the necessary financial supervision,and regulating the behavior of the supervision objects from the inside to create a good capital market environment and optimize the financial development structure.In addition,to achieve high-quality economic development,it is necessary to grasp the degree and scope of government intervention,so that government intervention can become a substitute mechanism to make up for market failures,so that the two can form a positive interaction.