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11 August 2020 An Empirical Study on the Impact of Coastal Areas on China's Financial Stability
Ling Wang, Jingjing Jiang
Author Affiliations +
Abstract

Wang, L. and Jiang, J.J., 2020. An empirical study on the impact of coastal areas on China's financial stability. In: Qiu, Y.; Zhu, H., and Fang, X. (eds.), Current Advancements in Marine and Coastal Research for Technological and Sociological Applications. Journal of Coastal Research, Special Issue No. 107, pp. 393-397. Coconut Creek (Florida), ISSN 0749-0208.

With the improvement of China's openness, the free flow of international capital is more and more free, but at the same time, it also puts forward higher requirements for the stability of the financial system. Coastal areas have the highest degree of openness in China, with more developed economy and finance. It can be said that coastal areas are “systemically important” areas that determine the degree of financial stability in China. This paper first puts forward the hypothesis of “systematic importance” of coastal areas to China's financial stability, then constructs the model of “interest rate total amount of credit”, and studies the influence degree of interest rate changes on the total amount of credit in China's major provinces by using the method of time series analysis, and then draws the conclusion that coastal areas are the “systemically important” areas of China's financial stability. Finally, this paper points out that coastal areas are the “systemically important” areas of China's financial stability Suggestions: first, coastal areas should establish corresponding financial stability assessment system while improving financial openness; second, build an effective risk early warning system; third, build an effective risk supervision system; fourth, build an effective emergency system.

©Coastal Education and Research Foundation, Inc. 2020
Ling Wang and Jingjing Jiang "An Empirical Study on the Impact of Coastal Areas on China's Financial Stability," Journal of Coastal Research 107(sp1), 393-397, (11 August 2020). https://doi.org/10.2112/JCR-SI107-089.1
Received: 19 May 2020; Accepted: 16 June 2020; Published: 11 August 2020
KEYWORDS
coastal areas
financial stability
systemically important regions
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