Abstract
In the era of globalization and information proliferation, China is undergoing a remarkable economic restructuring and financial industries’ development. This trend of the phenomenon is due to the fact of implications from the financial agglomeration and information spillover, which induced the financial centers’ transformation in this vital circumstance. Previous scholars focus more on the western countries’ financial centers evolution, and they neglect some deep insights on Asia regions. In the context of this research, we will concentrate on East Asia, particularly China, and to conduct a quantitative analysis of financial centers development based on SPSS application. Since Shanghai is designated as the international financial center and Beijing tends to be admitted as the national financial center in China, however, there are still some insufficient perspectives on the regional financial centers within the China financial centers hierarchies. In this research, we will implement the quantitative methods to evaluate the ability of major provinces in the development of regional financial centers in China. The sample frame is derived from 19 coastal and middle region provinces excluding Beijing, Shanghai and western region provinces. The prime methods of the research are based on the exploratory factor analysis and hierarchical cluster analysis using SPSS, with the combination of some parameters; we can eventually make the general ranking of the corresponding provinces to develop the regional financial centers, as well as carry out the classification of the selected provinces hierarchies. On the whole, the application of the quantitative analysis significantly enhances the precise and holistic evaluation of regional financial centers development in China based on province-level data and that Guangdong, Jiangsu, Shandong and Zhejiang are identified as the next generation of robust candidates for China regional financial centers. DOI: 10.5901/mjss.2016.v7n3s1p374
Highlights
Financial center as the hub of financial capital, information transmission, plays a dominant role in contemporary economy development and globalization. Reed (1981) is the pioneer to classify the hierarchies of the financial centers using taxonomy, whereby he utilized several parameters to evaluate the financial centers’ regional dominance and international embeddedness, making the accurate classification of financial centers levels, and the hierarchies are divided into five layers
Since Shanghai is designated as the China international financial center while Beijing is recognized as the China national financial center, admittedly, within China urban hierarchies, there is still a shortage of regional financial centers embedded in third level of China financial networks
We can find that Guangdong, Jiangsu, Shandong and Zhejiang provinces have the highest potential to develop as the regional financial centers as the result of highest comprehensive scores indicators and fundamental rankings
Summary
Financial center as the hub of financial capital, information transmission, plays a dominant role in contemporary economy development and globalization. Reed (1981) is the pioneer to classify the hierarchies of the financial centers using taxonomy, whereby he utilized several parameters to evaluate the financial centers’ regional dominance and international embeddedness, making the accurate classification of financial centers levels, and the hierarchies are divided into five layers. Reed (1981) is the pioneer to classify the hierarchies of the financial centers using taxonomy, whereby he utilized several parameters to evaluate the financial centers’ regional dominance and international embeddedness, making the accurate classification of financial centers levels, and the hierarchies are divided into five layers. Financial center as the hub of financial capital, information transmission, plays a dominant role in contemporary economy development and globalization. Shanghai focuses on the small and medium enterprises listing in stock market while Hong Kong exploits the big companies within the array of listing companies In this context the ultimate objective is to enlarge the complementary mechanism for these two metropolises, whereby they accelerate the transmission of the information and institutional policies to each other (Karreman & van der Knaap, 2009) . The China financial system development still encounters some potential obstacles, especially related to the uneven economy and financial exclusion, and this kind of financial system’s uneven development reinforces the foreign banks transfer and centralization in coastal areas in China, where it is the most prosperous region in China (Liu & Wu, 2008)
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