An Empirical Study on the Efficiency of Financial Support for Economic Development in Henan Province Based on DEA Malmquist Index Method

School of Economics and Business Administration, Chongqing University, Chongqing, China.

Abstract

The report of the 19th National People’s Congress points out that China’s social economy will gradually transition from the pursuit of high-speed operation to the pursuit of high-quality economic operation. The financial industries will strongly support the economic development in all aspects, however, studies show that the efficiency of finance in supporting economic development presents regional differences. This paper adopts the universally applicable DEA-Malmquist method and takes the panel data of Henan Province from 2013 to 2019 as the benchmark to calculate and study the input-output ratio of financial support for economic operation and development in each region of Henan Province, and the results show that the overall efficiency of financial service economy in each urban area of Henan Province has increased in the past seven years. According to the measured results in the first four parts of the most efficiency increase is analyzed, and based on the analysis results in the economic development of Henan province put forward some proposals in the new journey, increase the intensity of financial innovation and development, to carry out in-depth financial inclusion work, and to solve the problem that small and micro enterprises faced in raising funds and the slow pace of raising funds, in order to achieve a reasonable distribution of financial resources between the suppliers of funds and the demanders of funds.