The Research Of The Influential Factors Of Chinese Financial Agglomeration

Finance is an important driving force of economic development. Financial agglomeration is the concentration of financial institutions and activities in a certain area. The practice of international economic and finance development shows that the financial agglomeration has many benefits. Firstly, it helps to congregate money and realize the transformation of savings to the capital, that is conduced to development of all industries. Secondly, it helps to gather information and promote price discovery and formation, that is contribute to optimal allocation of resources. Thirdly, it helps to attract persons and speed up the innovation and reform, that is redounded to the sustainably, rapid and coordinated development of regional economy. Because of the important role on economic growth, finance industry and financial agglomeration have become the important measures of comprehensive national strength. More and more nations have focused on the development of finance industry and financial agglomeration, and take various measures to establish good environment for them. In such a big background, more and more domestic cities have the same ideas. They have put forward the goal of establishment of regional financial agglomeration in order to achieve the benefits of financial agglomeration. Therefore, the studies on influence factors and suggestions to promote the financial agglomeration have important practical significance.Literature review, qualitative analysis, quantitative analysis and comparative analysis method are used in this paper. On the basis of theoretical analysis and literature review, combined with the analysis of financial agglomeration process in the worldwide, ancient China, and contemporary China, empirical analysis are used to analyze the influence factors of financial agglomeration in China. Then the conclusion and policy Suggestions are put forward. The paper is divided into seven chapters as following:The first chapter is the introduction part. This chapter mainly describes the research background and significance, the research framework, the research methods and the innovations of the paper. The concept of financial agglomeration is defined here.The second chapter is the summarization of related theories and research results.This chapter is divided into two parts, the first part introduces the main idea and major view of industrial cluster theory, financial geography theory, location selection theory and finance resource theory. The second part generalizes the research status of financial agglomeration mainly from the financial agglomeration formation reason, the effects of agglomeration and the empirical analysis of the relationship between the agglomeration and regional economic development. The direction of future research is put forward on the basic of summarizing the limitation of existing research.The third chapter is the the analysis of the international financial agglomeration and influence factors. The history of international financial agglomeration formation and development process between the main nations in the world are described in this chapter. Five factors are debated. The first one is location advantage, that is the innate basis of the international financial agglomeration. The Second is the economic development, that is the solid basis of the international financial agglomeration. The third is financial innovation, that is the inner motive power of the international financial agglomeration. The fourth is the infrastructure, that is the essential element of the international financial agglomeration. The fifth is the government support, that is strong background of international financial agglomeration.The fourth chapter is the history of ancient Chinese financial agglomeration. The financial agglomeration in "Era of the Yellow River" and "Era of the Grand Canal" are analyzed. Location advantage, economic development, government support and financial innovation are factors that can influence the financial agglomeration in ancient China.The fifth chapter is the analysis of financial agglomeration in contemporary China. The gravity model is used to simulate the financial ties between cities. On the basis of measurement and comparison of the economic hinterland range of financial agglomeration cities, the financial agglomeration levels (national, primary, secondary and tertiary) in "Era of the Seaside City" are analyzed quantitatively.The sixth chapter is empirical analysis of influence factors of financial agglomeration in China. The panel method are used. Based on the research of previous chapters we construct indicators such as location, economic, etc. The indicators to describe the development of Internet and information technology are also used.The seventh chapter is the conclusion and policy suggestions. Based on the analysis of the previous chapter, we put forward the conclusion and policy suggestions.The central government should give unified planning to supervise the construction of regional financial centers. The national and regional multi-level financial agglomeration is the better choice for our nation. The suggestions are put forward, such as spurring the development of economy, strengthening location advantage, enhancing innovation, and utilizing government support, etc.Innovations of this paper are as following:Firstly, "Water Theory" of Chinese financial agglomeration is put forward. The existing research on the description of the financial agglomeration gives very little information in ancient China. Given early financial activities usually came into being and developed accompany with the economic and trade, we capture the information of financial activities and introduce the development of financial agglomeration through the economic historiography. It is found that the financial agglomeration districts are usually located in the seaside or riverside area, formed and moved accompany with the economic centers, from and along with the Yellow River, the Sui-Tang Dynasty Canals, the Beijing-Hangzhou Grand Canal, and the coastal areas. It is the "Water Theory" of Chinese financial agglomeration.Secondly, the gravity model is used to simulate the financial ties between cities. On the basis of measurement and comparison of the economic hinterland range of financial agglomeration cities, the financial agglomeration levels (national, primary, secondary and tertiary) are analyzed quantitatively. It provides the theoretical basis of financial agglomeration formation in China.Thirdly, it is put forward that the national and regional multi-level financial agglomeration should be planned and constructed on the basis of state-level Zones by the central government. Theory of multi-level financial agglomeration has been mentioned in the existing research. But the districts mentioned are traditional eight economic regions, etc. Because each of the existing state-level zones has special location advantage, predominance industry, economic hinterland, and so on, that are little overlap, the suggestion to planning and constructing regional financial agglomeration districts on the basis of state-level zones is put forward. Construction redundant and resource wasteful will be avoided, and a nationwide reasonable network of financial agglomeration will come into being.