An Empirical Study Of Industrial Structure Upgrading Of Guangdong Province Based On Financial Agglomeration

Finance is the core of modern economy. Its essence is the transformation mechanisms of savings to investment and the channels that provide capital from the surplus sectors to the deficient sectors. The allocation of financial resources will have a significant impact on the macroeconomic and micro-enterprise and play a crucial role in the adjustment of industrial structure. With the acceleration of economic and financial globalization, the rapid development of financial markets and the rapid flow of capital makes financial agglomeration widespread. The financial agglomeration has had a profound impact on the regional economic growth and industrial restructuring through the clustering effect and scale effect. And it is improving the regional economic competitiveness as a backbone.Taking the financial agglomeration and industrial structure upgrading as cut-in point, the study has established the theoretical framework that financial agglomeration how to affect industrial structure upgrading through the capital formation, capital allocation, technological progress, industrial integration and risk compensation mechanisms. By using the financial agglomeration theory integrating the practice of the financial development of Guangdong province, the study has built a financial agglomeration level evaluation index system and measured the financial agglomeration level of Guangdong over the years using the factor analysis method. Then the study utilizes the multiple linear regression models to examine the relationship between financial agglomeration and upgrading of industrial structure of Guangdong province. The empirical studies show that the financial agglomeration can broaden the investing and financing channels, increase the capital supply level and allocation efficiency, and promote regional industrial structure upgrading through its unique economic effects. Finally, the paper suggests that improving the level and quality of financial agglomeration is of great significance to promote regional industrial upgrading and economic growth.