Does Regional Financial Resource Contribute to Economic Growth? From the Perspective of Spatial Correlation Network

Feng Wang,Xiaotian Shi,Wei Chai,Bin Yan,Mingru Dong

doi:10.1177/2158244021999381

Feng Wang, Xiaotian Shi + Show 3 more

Open Access

https://doi.org/10.1177/2158244021999381

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Journal: SAGE Open	Publication Date: Jan 1, 2021
Citations: 4	License type: CC BY 4.0

Affiliation: China University of Mining and Technology

Abstract

Using the method of social network analysis, this article explores the characteristics of financial resources distribution at the provincial level in China from 2000 to 2017, and analyzes the influencing factors and network effects of the spatial correlation network characteristics on distribution of financial resources, the results are as follows: The overall network characteristics of the financial resources distribution among provinces and cities in China are of low density, of high dependence and poor stability. The level of economic development, marketization, and integration are related to the spatial correlation network of the distribution of financial resources, and the level of integration and marketization have a significant positive impact on it. Due to the imbalance of economic development among regions in China, the overall network characteristics have a negative network effect on the speed of economic development. Individual network characteristics have a positive network effect on the speed of economic development. Improving network density, network correlation, and reducing network level can narrow the gap in economic development between provinces.

Highlights

Since the reform and open in 1978, China’s financial system has undergone a process of development from scratch
It is affirmed that financial liberalization will be the trend of China’s social and economic development, which means the restrictions on the flow of financial resources will be reduced in the future, change the pattern of the distribution of financial resources
Through the comparative analysis of the two regional systems, the results showed that the southern system is superior to the northern system in terms of financial scale, system structure and development trend, and the distribution of financial resources in the northern and southern regions is unbalanced

Summary

Introduction

Since the reform and open in 1978, China’s financial system has undergone a process of development from scratch. The results of QAP correlation analysis show that the spatial association network structure of financial resources distribution is related to the level of economic development, globalization, marketization, and integration, respectively, and is statistically significant at the level of 1% significance. When estimating the overall network characteristics of China’s financial resources distribution, there is an inversion result that cuts off the contact path but increases the speed of economic development. The use of individual network characteristics can be more detailed to analysis network effects of the financial resources distribution network of provinces (municipalities, autonomous regions) on economic development. We use the degree of point centrality, betweenness centrality and closeness centrality of provinces (municipalities and autonomous regions) from 2000 to 2017 as indices of individual network characteristics, and GDP with natural logarithms as indicators of economic development. The conclusion of this article is steady and has passed the robustness test

Conclusions

Findings

Limitations and Future