Research On The Impact Of Regional Financial Entities Development On Capital Allocation Efficiency

Capital is an important driving force to boost the expansion of reproduction and can well promote economic growth.Since the reform and opening up,China’s economy has made great progress.At present,China’s economy is gradually undergoing transformation and tends to develop with high efficiency and high quality.However,the low efficiency of resource allocation in domestic capital market hinders the further growth of China’s economy.Therefore,it is of great theoretical and practical significance to investigate the influencing factors and mechanism of resource allocation efficiency in different regions.From the development experience of western countries,capital allocation is more efficient in markets with high financial development.However,for China,an emerging economy with complex external environment for the development of financial industry,the positive correlation between the two may not be established.Therefore,in order to investigate the efficiency level of capital allocation in China,in addition to the development degree of financial subjects,we also need to pay attention to the external environment of the operation of the financial industry,that is,the financial ecological environment.This will help to improve the efficiency of capital allocation in various regions of China,alleviate regional differences,improve the function of financial market and promote the prosperity of economic market.Based on the systematic review of relevant literature at home and abroad,and based on the panel data of 29 provinces and cities in China from 2007 to 2016,this paper uses the Wurgler elasticity coefficient method to calculate the regional capital allocation efficiency of 29 provinces and cities,and studies the impact of financial subject development on capital allocation efficiency and the regulatory effect of financial ecological environment in this process with the help of fixed effect model.The final conclusions of this paper are as follows:(1)in recent years,the development level of China’s financial subjects has generally shown an upward trend,but the upward degree is inconsistent among different provinces and cities;(2)Generally speaking,the efficiency of capital allocation in China is at a low level,and fluctuates greatly in different periods of time;(3)The sound development of financial entities will improve the efficiency of regional capital allocation;(4)The better the financial ecological environment,the greater the impact of the development of financial subjects on the efficiency of capital allocation.Finally,according to the results of empirical analysis,the paper puts forward policy suggestions to promote the development of financial subjects and improve the efficiency of capital allocation from multiple angles.