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10 July 2020 The Effect of Subprime Crisis on the Financial Factor Input and Economic Development of China's Largest Coastal City, Shanghai, Based on an Analysis of Total Growth and Efficiency
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Abstract

Jin, J.; Li, F.; Zhang, N.; Chuan, M.; Cai, J.; He, L., and Luo, Y., 2020. The effect of subprime crisis on the financial factor input and economic development of China's largest coastal city, Shanghai, based on an analysis of total growth and efficiency. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 142–147. Coconut Creek (Florida), ISSN 0749-0208.

Shanghai, as the largest coastal city in China, is growing rapidly in both its economy and its financial market. Using the exogenous shock of the 2008 subprime mortgage crisis as a test case, this research empirically applied a cointegration test and a vector autoregression (VAR) model to test the relationship between financial factors and Shanghai's regional economic development. The results indicate that the contribution of financial factors to Shanghai's regional economic growth has declined significantly because of the influence of the subprime mortgage crisis, and the contribution of financial factors to the growth of Shanghai's gross domestic product (GDP) is also weak. This work makes certain corresponding policy suggestions. First, the pace of financial innovation and the optimization of Shanghai's financial market system should be accelerated. Second, Shanghai's local government intervene appropriately at the right times. Third, efforts should be made to improve the efficiency of financial inputs. Finally, Shanghai should improve its ability to withstand external risk shocks.

©Coastal Education and Research Foundation, Inc. 2020
Jingyu Jin, Fei Li, Nan Zhang, Min Chuan, Jirong Cai, Longsen He, and Yingying Luo "The Effect of Subprime Crisis on the Financial Factor Input and Economic Development of China's Largest Coastal City, Shanghai, Based on an Analysis of Total Growth and Efficiency," Journal of Coastal Research 106(sp1), 142-147, (10 July 2020). https://doi.org/10.2112/SI106-035.1
Received: 30 November 2019; Accepted: 5 January 2020; Published: 10 July 2020
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