Study on Estimation Method of the Scale of Informal Finance in China: Based on Empirical Data of Wuhan

Chinese informal finance has shown its own characteristics and scale of development. Based on empirical data of Wuhan city which is the metropolis in the central and western region of China, the author attempts to explore the objective laws of the development of informal finance in developing countries such as China. This paper has described the various characteristics of informal finance in Wuhan, absorbed currently available calculation method, considered the "Crowding-out Effect" of the fiscal capital, and used series of annual θ-value method, and then improve the calculation method of informal financial. At last, some constructive and significant research conclusions are proposed.