The Impact Of Financial Agglomeration On Green Development

Since the reform and opening up,China’s economy has made great progress and people’s life has been greatly improved.With the development of economy,there are two typical facts in the current economic environment: the rapid expansion of China’s financial industry and the serious deterioration of China’s environmental quality.The early extensive economic development model with high input,high energy consumption,low quality and low output can not meet the requirements of China’s development."Green water and green hills are golden mountains and silver mountains".Under the background of high-quality development of China’s economy,how to achieve the effective governance of environmental pollution and the comprehensive improvement of green ecological efficiency,how to practice "green development" in China and help enterprises improve their green innovation ability have become the key issues to be solved in the current society.This is not only related to national security and people’s well-being,but also related to the trend of China’s future economic development and the overall planning of high-quality economic development,which has very important theoretical value and practical significance.As the core of modern economy,finance plays an increasingly important role in economic growth.As an environment-friendly industry,finance has the characteristics of green,clean,innovative and efficient,and is the key industry of green development.At the same time,the abundant financial support provided by financial agglomeration is also the premise of stimulating investment and innovation activities,which plays a very effective role in improving enterprise innovation ability and optimizing resource allocation.However,few studies have analyzed the relationship between financial agglomeration and green development.Based on this,this paper focuses on the impact of financial agglomeration on green development,the channels and channels through which financial agglomeration affects green development,and how to use the advantages of financial agglomeration to improve the level of green development in China.In this paper,the research on green development,not only from the direction of environmental pollution control,but also joined the research on the direction of green science and technology innovation,can accurately grasp the synergy of China’s ecological environment governance and green innovation,and provide important reference for the collaborative improvement of China’s green development.In theory,there are three mechanisms for the impact of financial agglomeration on the development of green economy.First,the innovation-driven effect.Financial agglomeration shortens the distance between financial institutions,accelerates the flow and sharing of information,reduces the degree of information asymmetry between enterprises and financial institutions,contributes to the supply and flow of funds,facilitates the financing of enterprises,promotes the development and use of green technologies of enterprises,and produces innovative effects.Second,economies of scale.Financial agglomeration promotes the effect of external economies of scale,which not only improves the operation efficiency of the industry itself,but also stimulates the development of other industries.In particular,regional economic agglomeration enhances the spillover effect of technology and knowledge,and improves the efficiency of regional green economy.Third,the effect of industrial upgrading.Financial agglomeration will attract resource agglomeration and industrial agglomeration,thus promoting the upgrading of industrial structure,promoting the upgrading of industrial structure and the growth of green economy.In order to analyze the direct impact of financial agglomeration on the development of green economy and verify the above influence mechanism,this paper analyzes the impact of financial agglomeration on the development of green economy from three levels: enterprise,region and industry.Firstly,on the basis of clarifying the concepts of financial agglomeration and green economy development,Daron Acemoglu et al.(2012)and other scholars are referred to build a two-sector model to deduce the impact of financial agglomeration on green innovation of enterprises.On this basis,the financial variables of each province and region are selected,and the financial agglomeration index at the regional level is constructed by factor analysis method.Then,this paper selects data samples of Chinese A-share listed companies from 2007 to 2017 to empirically analyze the impact of financial agglomeration on green innovation behavior of enterprises.The results show that financial agglomeration has a linear positive effect on the amount of green innovation of enterprises,and the conclusion is still true after a series of endogenous and robustness tests such as instrumental variable method.Further,the paper explores the green innovation strategy of enterprises and finds that the impact of financial agglomeration on the quality of green innovation of enterprises presents a positive U-shape,that is,when the level of financial agglomeration is low(high),the quality of green innovation of enterprises presents a downward(upward)trend.This indicates that only when financial agglomeration exceeds the critical value,financial agglomeration can promote the simultaneous improvement of the quantity and quality of green innovation of enterprises.The mechanism analysis shows that financial agglomeration has a more obvious impact on enterprises with higher financing constraints,which proves that financial agglomeration can reduce the degree of financing constraints of enterprises and thus improve green innovation of enterprises.Secondly,at the regional level,the impact of financial agglomeration on regional green innovation efficiency is analyzed.Based on the provincial level data of China from 2003 to 2017,this paper empirically tests the relationship between financial agglomeration and regional green economic efficiency using provincial panel data.Using the method of data envelopment analysis(DEA),this paper constructs the green total factor productivity(TFP)of China’s provinces and cities to measure the regional green economic efficiency.The results show that financial agglomeration has a significant positive impact on regional green economic efficiency.After robustness test of sample selection and endogeneity test of dynamic panel model,the conclusion is robust.Further,the heterogeneity between regions is analyzed,and the results show that the central region or the region with higher economic development degree has more obvious influence.Finally,the correlation effect among financial agglomeration,industrial structure upgrading and green economic growth is investigated.In the theoretical analysis,this paper explores the mutual influence of the three factors,and then puts them into a unified framework to analyze whether financial agglomeration will affect the regional green economic growth through the upgrading of industrial structure.Based on the panel data of provinces and cities in China from 2003 to 2017,green economic growth,financial agglomeration,industrial structure upgrading,government intervention degree and environmental regulation were selected as endogenous variables to construct the panel VAR model to analyze the correlation effects among the variables.Impulse response analysis shows that financial agglomeration has a positive impact on industrial structure upgrading and green economic growth.The variance decomposition of forecast errors also shows that,in addition to green economic growth itself,financial agglomeration can predict or explain the change of green economic growth to the greatest extent,contributing up to 16%.The results of Granger causality test show that there is a dynamic relationship between financial agglomeration and industrial structure upgrading,and they are mutually causal.At the same time,there is a causal relationship between financial agglomeration and industrial structure upgrading and green economic growth.The above results indicate that financial agglomeration can promote regional green economic growth by influencing industrial structure upgrading,and industrial structure plays an important role in the relationship between financial agglomeration and green economic growth.The innovation of this paper lies in: firstly,the financial agglomeration index of China’s provinces and cities is measured by factor analysis method.Most of the existing literature measures financial agglomeration in ways similar to industrial agglomeration,such as location entropy or Herfindahl index.It should be noted that,different from industrial agglomeration,the financial industry has unique industrial characteristics,such as large amount of data,strong liquidity,and wide distribution range.The construction method of purely using industrial agglomeration cannot fully capture the characteristics of financial agglomeration.This paper selects the financial industry data of each province and region and uses the factor analysis method to measure the financial agglomeration index.Second,from the perspectives of enterprises,regions and industries,this paper comprehensively evaluates the impact of financial agglomeration on the development of green economy from micro to macro.This has expanded the relevant research on the economic impact of financial agglomeration and the driving factors affecting the development of green economy.Existing studies have mostly analyzed the impact of financial agglomeration on corporate financing constraints,ignoring the possible impact of financial agglomeration on the development of green economy.At the same time,most of the existing studies on green development are from the perspective of the region,and the spillover effect and attenuation boundary between regions are investigated through the spatial panel model,which ignores the huge role of industrial structure in promoting green development and lacks the perspective of industrial economy.This paper not only analyzes the relationship between financial agglomeration and the quantity and quality of green innovation at the firm level,but also describes the impact of financial agglomeration on the efficiency of green economy at the provincial level.Furthermore,the paper analyzes the relationship between financial agglomeration,industrial structure upgrading and green economic growth by taking into account the upgrading of industrial structure.Third,in the aspect of theory,based on the ko sermon glass production function,in the "clean","pollution" double division theory model on the basis of adding external financial agglomeration shocks,from the point of view of theoretical model analysis of the financial agglomeration effect on the development of green economy,green development related theory research have certain supplementary effect.In addition,this paper summarizes three mechanisms of financial agglomeration affecting green economy development,namely,innovation-driven mechanism,scale agglomeration mechanism and industrial structure upgrading mechanism,and conducts empirical tests on the econometric model.This paper also uses a series of cutting-edge research methods,such as data envelopment method,dynamic panel model,panel VAR model,etc.,to provide empirical evidence for testing the theoretical mechanism.It is worth mentioning that,in the research process of this paper,topographic relief is used as an instrumental variable for the first time to study the relationship between financial agglomeration and green innovation behavior of enterprises,which reduces the endogenous problem.The research of this paper has policy significance.First,improve the level of financial agglomeration and inject vitality into enterprises.Financial agglomeration,as a spatial feature of China’s financial development at the present stage,has an impact on the development of green economy that cannot be ignored.The improvement of financial agglomeration can not only promote the increase of enterprises’ green innovation ability,but also improve the development efficiency of green economy at the regional level.Therefore,it is an effective means to enhance the innovation vitality of enterprises and regional innovation power with the help of financial agglomeration.Second,we need to strengthen supervision and financial guarantee mechanisms in the financial sector.When financial agglomeration plays an important role,it should also pay attention to its own risk prevention.On this basis,it should give play to the spillover effect on other industries,enhance the efficient allocation of resources and promote the development of green economy by improving the flow speed and efficiency of capital.Third,we should establish a mechanism for coordinated development of financial agglomeration,industrial structure and green economy.Financial agglomeration is often accompanied by the upgrading of industrial structure,which improves the level of regional industrial structure and then promotes the development of green economy.