The Financial Contribution of Financial Development in the Transformation of Dual Economy Structure

Author: Wang Shaoquan
Publisher:
Publish Date: 2005-07-01
Features: This book adopts the two-sector hypothesis of Ranis and Fei, using the dual-comparison coefficient as an indicator to measure the degree of dual economic transformation. It treats the financial sector as the medium for capital flow between the two sectors and tentatively establishes a financial development model for the dual economy, revealing the mechanism by which financial development promotes the transformation of the dual economy. On this basis, the book establishes evaluation criteria for the positive advancement of dual economic transformation by financial development. These achievements not only address the research shortcomings of traditional financial development theory but also refine and deepen the dual-comparison coefficient indicator pioneered by Professor Chen Zongsheng, making its standard for measuring the state of dual economic transformation more specific and clear. Following the analytical approach of establishing the model and evaluation criteria mentioned above, the book focuses on researching the role and contribution of financial development in the transformation of China's dual economy, particularly from the perspectives of the financial sector's savings mobilization capacity, operational efficiency, and capital allocation efficiency. Additionally, the book conducts an international comparative study of the role and contribution of financial development in the dual economic transformation of other East Asian countries and regions, such as India, analyzing the differences in the role and contribution of financial development in advancing dual economic transformation among these countries and regions. From this, it draws some valuable lessons and experiences for China to learn from. Based on the above research, the book concludes by proposing targeted policy recommendations to ensure that financial development in China positively advances the transformation of the dual economy.