Research On Regional Financial Development Based On Spatial Association Network

The coordinated development of regional finance has played an important role in regulating the flow of financial resources,enhancing the overall financial level,and promoting continuous economic growth.After China began to carry out economic system reforms in 1978,due to preferential policies,the eastern coastal regions become the main development focus;and with economic growth,large gaps appear in development levels between regions.According to actual objective conditions of different regions,the country has successively proposed strategies for the development of western regions,the revitalization of the old industrial bases in the northeast China,the rise of the central region,and others.From the perspective of geographic location,the economic development situations of the eastern,central,western and northeastern regions have been gradually improved.Recently,the nation has proposed many national strategies,such as the coordinated development of the Beijing-Tianjin-Hebei region,the development of the Yangtze River Economic Belt,the upgraded integrated development of the Yangtze River Delta,and the officially planned development of the Guangdong-Hong Kong-Macao Greater Bay Area,all of which highlight cross-regional economic exchanges and cooperation.At present,China’s economic growth mode has changed,with the economic quality becoming an important content of social development.And the new development concept takes into account the economic cooperation between regions.At the same time,objectively,the construction of a modern economic system requires coordination in the process of economic development of different regions.Because there is a close relationship between regional finance and regional economy,the financial development is also required to ensure regional coordination.With continuous efforts in the marketization process,the obstacles to the spatial cross-region transfer of various factors are gradually diminished,and the economic and financial exchanges and business transactions between different regions will also gradually be enhanced as the transaction costs gradually go down.Due to the high liquidity of financial resources,financial linkages may be generated in a larger space.The measures to promote the coordinated development of regional finance should not only consider the impact of geographic distance,but should even pay attention to the spillover effects on the overall financial development in the process of financial exchanges across regions.This study introduces the spatial operation mechanism into the discussion of regional financial development.In combination of relevant knowledge on regional finance,spatial economics,financial geography,spatial interaction theory,and social network theory,this study uses such empirical methods as gravity model,threshold regression model and Gini coefficient to analyze the spatial association,the overall and individual characteristics of network structures,the network effects and the change trend of gaps in regional financial development from 1989 to 2019.Finally,in combination of the network distribution structure of financial development,some relevant suggestions are put forward for promoting regional coordinated development.The contents explored in this study mainly include:First,organize the relevant supporting theories needed for research on regional financial development,spatial economics,financial geography,spatial interaction theory,and social network theory,while provide necessary explanations on the formation and structural evolution of correlation networks for regional financial development.Second,the spatial correlation network of regional financial development is constructed by gravity model.Overall structural characteristics of regional financial development are described by virtue of such indicators as network density,network correlation,network level and network efficiency,and individual structural characteristics of regional financial development are expounded through such indicators as degree centrality,betweenness centrality and proximity centrality.Besides,block model is used for sector division of different regions in spatial structure,and financial linkages and spillover effects of different sectors in spatial structure of regional financial development are analyzed,as well as dynamic changes of financial linkages between different sectors as time goes on.What’s more,the role of middleman is used to analyze the intermediary role of regions in different sectors in spatial structure,and the model structure is used to analyze the main connection methods of financial relations in various regions from the micro-interaction perspective.Third,use indicators such as network density,network efficiency and network level to analyze the impact of the overall structural characteristics of the spatial network on the level of financial development,to analyze the influence of the individual structural characteristics of the spatial network on the level of financial development by using such indexes as degree centrality,betweenness centrality and proximity centrality.Fourth,by use of Dagum Gini coefficient calculation method,and in combination with the sector division results of spatial structure,the gaps and gap contributions of financial development at the overall level,inside the sectors and among various sectors are analyzed.Fifth,combining the sector division results of spatial structure,whether σconvergence,absolute β convergence and conditional β convergence taking into account such factors as economic development,human capital conditions and the behavior of government intervention exist with the financial development level at the overall level,inside the sectors and among various sectors are analyzed.Main conclusions drawn in this study include:First,the network density presents a gradually increasing trend as a whole.Network correlation is always 1 with no financial isolated point,redundant paths are relatively lacking,interaction frequency of financial development among various regions is relatively low,and the correlation and stability of spatial structure are of great potential for improvement.Since the centralization of out-degree in each year shows a downward trend,the multi-center financial development pattern gradually emerges.According to the division results of block model and measurement results of spillover effects,it can be found that there are obvious financial spillover effects inside and among the sectors,and financial linkages among different sectors tend to strengthen gradually.From the micro perspective,it can be found through analysis of macro-network that two-way interaction models in the current spatial structure do not appear frequently,the interaction of financial development shows significant asymmetry in spatial distribution,and financial spillover effects are mainly one-way.Second,the network efficiency plays a significant role in the overall financial development,and the financial system is becoming more and more stable with the continuous decline of network efficiency.The effect of network density and network level on the overall financial development is similar.Financial spillover effects will be more easily transferred among various regions while network density is being improved constantly,and regional driving effects of financial growth pole are more obvious.The overall financial development level will be improved with the increase of network level,the spatial structure is significantly characterized by “center-edge”,and the financial center plays an important role in promoting regional financial development.Meanwhile,according to the test of several threshold variables,it can be found that the “core-edge”structure of spatial network is more suitable for regional financial development trend at the present stage,and the appropriate concentration of financial resources in financial center is more conducive to improving the overall financial development level.Third,according to the calculation and decomposition based on Dagum Gini coefficient,Gini coefficient of overall financial development always remains below 0.2,with a reasonable fluctuation range.The gap in financial development level inside Sector I fluctuates obviously,which is quite different from Sectors III and IV in financial development.Besides,the financial Gini coefficient between Sector III and Sector IV always remains at a low level,with a similar financial level.Compared with the gap contribution rate inside the sectors,the fluctuation range of contribution curve between sectors is larger,and the gap of regional financial development mainly lies in the contributions between sectors.Fourth,the test results of σ convergence show that compared with the fluctuation of overall financial development level,there is a larger gap in financial development level in the regions inside Sector I,while the gap in financial development level in Sectors II,III and IV is smaller than the overall situation.Absolute β convergence exists with the financial development level at the overall level,inside the sectors and among various sectors in a long time.Compared with the overall financial development,the convergence rate of Sectors II and III is higher.After taking into account the economic development status,human capital conditions and the behavior of government intervention in different regions,the financial development at the overall level,inside the sectors and among various sectors presents a significant convergence trend,the degree of convergence is significantly higher than that only considering the financial level itself,and the convergence rate is improved.In general,the growth of economic level can narrow the gap in regional financial development level.In most cases,the increase of human capital will widen the gap in regional financial development level,which is mainly manifested at the early stage of research.The behavior of government intervention can also widen the gap in regional financial development,and therefore,it’s more conducive to the convergence of regional financial development level to reduce unnecessary financial intervention of the government and give full play to the leading role of the market.Based on the above results about the spatial structure characteristics of regional financial development,after taking full account of the differences in the functions undertaken by different regions in the associated networks,this study puts forward some targeted suggestions,including: according to different network functions,to formulate targeted and differentiated policies for promoting financial development;based on the reasons for the lower financial levels,to take more precise and corresponding measures;to strengthen the exchanges of financial activities between regions and promote the process of regional financial integration;and by taking advantage of the benign interactive mechanism between finance and the economy,to deliver a continuous positive influence and realize the common development of finance and economy.