Empirical Analysis Of Financial Industry Concentration And It's Radiation Effects

Finance is the core of modern economy;the financial industry concentration has become a universal phenomenon. Research on financial industry concentration in Chinese provinces and autonomous regions will assist to recognize the stage of financial sector development, financial agglomeration process character difference between different regions, and the key drivers of financial industry concentration, so as to correctly guide the financial development decision-making onto a right way.So far, study of Chinese financial industry concentration mainly focus on the formation mechanism of the financial industry concentration, the formation of patterns, the influencing factors, dynamic process of financial company cluster and financial center. But there is little research on dynamic process of financial industry concentration in Chinese provinces, the regional difference in concentration extent, related effects caused by financial industry concentration, not even to say empirical analysis. That's because on the one hand, China's financial system is not perfect, lacking of financial statistics data, on the other hand, there is no effective assessment technique. Based on the generalization about financial industry concentration evaluation both at home and abroad. By use of making a comprehensive comparison of these estimate methods, considering characters of financial industry at the same time, we finally apply an evaluation indexes system which structured by factor analysis technique into the study of financial industry concentration in this paper. At empirical study part, using most updated data to analyze financial industry concentration in 16 cities of Yangtza River Delta Area. In addition, Wilson maximum entropy principle is applied to estimate key cities' financial radiation radius and radiation intensity; thereby we can analyze the radiation effect caused by financial industry concentration. The empirical results shows that the Yangtze River Delta financial industry development is on a higher level in China, financial industry agglomeration of radiation field appears overlapping and duplication pattern between the core cities, an frequent interaction pattern of radiation network of regional finance and financial resources has taken shape, and it proves that financial industry concentration radiation effects can promote the regional development.