The Spatial Econometric Analysis Of Financial Agglomeration To Regional Income Gap

From the beginning of the 1970s, financial resource flows in space have becoming the trend of agglomeration, a lot of financial resources are concentrated in developed regions. In the process of financial agglomeration, continuing to draw on the advantages of financial resources in the surrounding area, which is only focused and not radiated, resulting in a non-balanced development among regions. And generating the huge gap between the regions have a obviously trend of agglomeration and the"being gathered" regions in economic growth, the technical skills and knowledge stock. Whether this feature of financial agglomeration in space have the impact to the way and extent of inter-regional income distribution which have a role to regional economic development at the same time? How does the spatial difference of regional financial agglomeration cause income changed? How does the time and space combination of the financial resources changes the income distribution? It is the problem which this paper to solve.At present, for the problems in the financial and income distribution, few studies directly elaborate the relationship of financial agglomeration and income distribution. Most of the research do this study from the quiescent state of financial development. This paper by means of geographic information systems and spatial econometric models, study the impact from the flow of financial resources to the income distribution using the spatial panel data.It can be better explained the role to the income gap from the direction of the financial resources movement.Combined with the reality, analysis of financial concentration and distribution of regional income disparities and development trend in China. With the Arcgis drawing software, it can be seen financial agglomeration and income levels in our country showed east-middle-west three steps distribution. It shows the spatial distribution of financial agglomeration affected regional income gap largely, and the need for further study in mechanism from financial agglomeration to the income gap.The most basic functions of the financial system is to provide loans to help the real economy. However, according to the theory of financial repression and deepening, taken in the history of China’s non-market-oriented financial repression policies, resulting in real interest rates below the equilibrium interest rate, forming the interest rate inversion mechanism. So that the residents in developed can use capital with low cost, and the residents in underdeveloped regions can not get a high interest income. At last, it impact on regional income distribution. And because the original accumulation of wealth disparity, coupled with the existence of the credit threshold, making the developed local residents can cross the threshold of credit, expanding the channel of increase income, rising income. And underdeveloped local residents can not cross the credit threshold, it has been at a low level circulation, resulting the income gap between the regions.In terms of industrial adjustment mechanism, discusses financial agglomeration make the capital factor in income rising,and labor factor in income declining from the perspective of capital factor and labor factor the income distribution,coupled with the impact of the marginal regional capital. And because of the use of catch-up strategy in China, the financial resources are more concentrated in the monopoly industries which don’t have viability. However,this industries most the concentrated in the developed areas,making the lower efficiency of resource allocation, gap among regions is formed, resulting in inter-regional income distribution is unreasonable.In terms of knowledge spillover mechanism, through the analysis of evolutionary game model concluded that finance gathered in developed regions will have systemic effects, innovation, technological progress and the information upgrade effect, which promote the upgrading of its technological progress and labor productivity, thus contributing to income growth. In the underdeveloped regions due to knowledge gap is too large, it will form the knowledge locked situation, resulting in poor knowledge spillover channels, and thus can not provide strong financial support to technological progress, so as to gradually form a labor productivity differences with developed areas, thereby forming income gap.Respectively, choose the data from three levels of the financial ruction, industrical adjustment and knowledge spillovers which have influence to the income gap, building space measurement model. Further estimates the direct and indirect effects of financial agglomeration effect to the regional income gap. To investigate the combined path of financial agglomeration to regional income gap in all levels.At first, measure the functional effects of financial agglomeration to income, with the spatial econometric statistical method that panel data chosen from2004 to 2013 in 31 Chinese provinces.Based on Cobb Douglas function, simulation the space correlation between financial agglomeration and income level. The results showed that:financial agglomeration index and foreign currency deposits by the bank, premium income and the amount of the composition of stock market financing, technical level and the role of government index of per capita disposable income has a significant positive effect. Prove that because of the difference in degree and pattern of financial agglomeration exists in the different regions, caused the income gap among regions. So we should take advantage of economic growth pole of development strategies, build multi-level financial center, narrow the income gap among regions.Secondly, the estimated industrial adjustment effects of fincial agglomeration to income,added industrial structure indicators and monopoly indicators on the basis of the previous chapter model.The results show, financial agglomeration index, the index of technological progress, the impact of the industrial structure of the income distribution index more significantly, a monopoly factors negatively correlated with income distribution, while the role of government is not very obvious. Therefore, the government should follow its own resource endowment proposed industrial upgrading and development strategies. So that the flow direction of financial agglomeration and patterns follow market rules, higher flow yields place to effectively promote technological progress, improving the allocation of financial resources, unequal conditions and promote regional balance in labor productivity, narrowing the income gap-Finally, knowledge production function, based on the establishment of spatial econometric model found, it has a significant effect on the distribution of knowledge spillover effects in financial agglomeration process of income. Spatial agglomeration and diffusion of financial resources within the cluster will be activated tacit knowledge, improve the competitiveness of financial agglomeration community, so as to enhance the income level in the population in this region. Financial agglomeration index, education level, financial agglomeration scale, R&D investment and technology market turnover to enhance income levels are significant knowledge spillovers and investment in human capital is no clear knowledge spillover effects. Therefore, you should use the knowledge spillover effects of financial agglomeration, it can effectively radiate to underdeveloped areas, thereby promoting regional balanced development of education, improve their labor productivity.Through theoretical analysis and empirical analysis, summed up the three impact of the allocation of financial agglomeration to the income gap.There are finance functional effects, industrial structure effect and the knowledge spillover effect. First, financial cluster by gathering savings, diversify risk, facilitate transactions and promote corporate governance and information revealing five functions, resulting in different degrees of impact on inter-regional capital accumulation, technological innovation and economic development, resulting in regional disparities in labor productivity, then bring functional effects on inter-regional financial income distribution. Second, the industrial structure have difference in regions, It will produce different effects to the industry in capital accumulation and value-added effect. The region’s capital-intensive industry and profit directly affect wage levels of residents, due to the effects of financial agglomeration of different industries in different regions, but also caused the income gap among regions. Finally, there have the difference between developed areas and backward areas in the knowledge spillover effect, knowledgeable system developed areas generally higher level of human capital, combined with a lot of tacit knowledge generated financial agglomeration, forming a rich database of information. At the same time, information coding ability of this region’s strong body, determines the higher income level of residents in this area, and backward areas and vice versa, thus forming the income gap between developed regions and backward areas.