Regional Comparative Study On Financial Agglomeration And Industrial Structure Upgrading

With the increasingly restricted condition concerning environmental resources and the rising cost of production factors,former development pattern regarding high input as well as consumption and simply focused on quantity expansion has been difficult to sustain.At present,China is experiencing and at the key stage within the evolution process from factor and capital driven to innovation driven.Consequently,under"new normal",demands of accelerating economic growth mode transformation,optimizing industrial structure upgrading,and thus ensuring sustainable development are becoming increasingly urgent.As a result,with respect to establishment of a modern financial service system that compatible to regional economy,promotion of financial agglomeration spillover effect,improvement of financial resource allocation,facilitation of industrial structure adjustment,and enhancement of potential and power of economic sustainable development,are problems that required to be considered,focused,and found solutions by government of all the provincial divisions in China.Focused on correlated interaction between financial agglomeration and industrial structure upgrading,the study on one hand investigates general characteristics and rules,driving factors and influence forces,external effects and internal mechanism of the previous two key components.Subsequently,a bilateral but mutual relationship,which functions continuously through capital catalysis,capital formation,resources allocation,risk management and industrial integration,respectively,is supported.On the other hand,the study analyzes process,status quo,and regional differences of financial agglomeration and industrial structure upgrading concerning all the 31provincial divisions in mainland China during the period of 2005 to 2014.Besides,the study quantifies degree of spillover effects triggered by financial agglomeration by means of time-series model and spatial econometrics model individually on basis of cross-sectional and panel data.Furthermore,a comprehensive evaluation system is established for measuring coupling matching between the two economic sub-systems the identical 31 geographical regions within the observation period under conception of Capacitive Coupling.Therefore,the main conclusions of the study are as follows.First of all,based on static cross-section point of view,majority of 31 provincial divisions supports a significant positive correlation between Industrial Development Index and Location Quotient of Banking,Securities,as well as Insurance.In addition,a strong and accurate linear relationship is found and proved among the previous parameters,meanwhile,coefficients of R~2 and adjusted R~2 generally read from 0.94 to0.99 in most year of the entire observation period.Secondly,in the respect of time-series,both field of banking and securities show a positive correlation to industrial structure upgrading during the entire observation period.Generally,estimated parameters of banking are obviously greater than that of securities,while regression coefficients taking leading position alternately but keep a stable trend as a whole.On the contrary,field of insurance conducts limited influence on optimizing and upgrading industrial structure in both local and adjacent region.Likewise,considering dynamic panel-data,empirical results suggest that level of financial agglomeration applies a significant positive effect on industrial structure upgrading,especially in the field of banking and securities while that of insurance is unobvious consistently.Meanwhile,under assumption of individual-fixed effects,the intercept universally reads a steady increasing trend among the Eastern and Western region,while a continuous volatility within the Central and Northeastern region.Furthermore,in the view of spatial economics,statistically significant dependent and spillover effects are proved within banking,securities and insurance as well as industrial structure upgrading during the whole observation period:an H-H spatial correlation in Bohai Rim,Yangtze River Delta and also Pearl River Delta,while an L-L spatial correlation in central,west and northeast part of China.With assumption of Spatial Durbin Model(time-fixed effects),all three financial sub-fields illustrate autocorrelation,which suggests significant direct,indirect and overall spillover effects under different levels from directions of both positive and negative respectively,to industrial structure upgrading concerning both local and adjacent geographical space.Finally,from the perspective of coupling and matching,system utilities of both financial agglomeration and industrial structure upgrading demonstrate diversified relative positions among different provincial divisions within different stages in the observation period,and take leading position one after another successively.Generally,numerical result of system coupling improves significantly and majority of provinces observes a considerable evolution from primary to advanced stage all over China.Based on the above conclusions,in the frame of facilitating the implementation of both Silk Road Economic Belt and 21st Century Maritime Silk Road strategy,it is important to formulate and fulfill combined policies including enhancing the ability of agglomeration,optimizing the ecology of financial industry,expanding the scope of radiation and achieving interaction between various sectors as well.In fact,apart from an excellent external environment with high standard financial agglomeration and optimized industrial structure,a stable,sustainable,sound and prosperous regional economy also requires the previous two fields interacting and promoting efficiently,coordinating and collaborating effectively.