Efficiency Measurement of Financial Innovation System Based on Data Envelopment Analysis

The financial innovation system is one important part of the national financial system and plays a great role in harmonious development of finance and economy. Data envelopment analysis (DEA) is employed in empirical efficiency measurement of the financial innovation systems of thirty seven countries and regions in the world. It is shown that market-based financial systems are more favorable to financial innovation systems than bank-based financial systems; if financial outputs and economic outputs want to be increased, input of financial innovation system should be increased in developing countries with high growth and undeveloped finance.