THE ANALYSIS OF THE REGIONAL ECONOMIC GROWTH AND THE REGIONAL FINANCIAL INDUSTRY DEVELOPMENT DIFFERENCE IN CHINA BASED ON THE THEIL INDEX
Abstract
Based on the panel data of 31 provinces and cities across China (except Hong Kong, Macao, and Taiwan) from 2003 to 2018, this paper identifies four economic regions i.e., eastern, central, western, and northeast, according to the national development layout. We study the degree of economic and financial disparities and its influencing factors in large economic regions of China. We use Granger causality measure to test whether there is a causal effect between economic and financial development in the regions of China. The relationship between growth, industrial structure, and economic vitality is comparatively analysed. The results of the study find that the economic and financial disparities in the four major regions are generally in a downward trend for these years. In addition, the relationship between the financial development of the four major regions and their economic growth, industrial structure, and economic vitality has obvious regional disparities. Lastly, we conclude that financial development does not necessarily follow economic development.