Formation Of The Regional Financial Center

In recent years, with the economic growth and finance's promoting economic development, an aim to build regional financial centre is proposed in some cities. In this background, this thesis select financial centers to study from the financial institutions with the framework of location theory.In this thesis, it analysis and concludes various factors affecting the locations of economic entities, basing on reviews of the classical location theory and its development. It holds that these factors influence the main profit of economic entities with the gains of space, which affects the location of economic entities, thereby to find out different ways to affect choosing locations. On bases of Coase's transaction costs theory and Smith's theory of benefits of the space boundaries, it studies the location factors on location choice and its influence pathway while looking for space-related losses and profit and as intermediary. On the other hand, it believes that financial institutions select locations according to the gains and losses relating with space under the analysis framework of hypothesis of economic person. It constructs the theory of financial institutions location, which helps to study the formation of financial centers, with the example of Yangtze River Delta to illustrate the formation of agglomeration.This paper employs methods of comparative analysis, the factor analysis and location quotient analysis to study the financial institutions' location choice. It finds out different factors affecting gains of financial institutions in 16 cities of Yangtze River Delta and compares their income of expectations with the comparative analysis. It employs the factor analysis to study the influence of financial institutions. It compares different income of expectations in various cities on analyzing factor affecting space costs, therefore to form the agglomeration in order to realize the maximized profits.