Research On The Influence Of Financial Agglomeration On The Growth Of Total Factor Productivity In Manufacturing Industry

Since the reform and open policy, our country manufacturing industry after decades of rapid development, although manufacturing scale has leapt to first in the world, however, compared with the advanced level in the world, our country manufacturing industry is still big but not strong, and weak capacity of independent innovation, key technology and high-end equipment depend on foreign at high degree, with enterprises as the mainstay of the manufacturing sector innovation system not perfect, the product grade is not high, lack of international competitiveness, with the constraints of resources and environment continue to strengthen, to rely on the input of resources, the expansion of the scale of the extensive mode of development unsustainable. At the same time, after the financial crisis, developed economies begin to realize long-term outsourcing policy and domestic industrial hollowing caused a lot of social ills. And after the crisis, developed countries are calling for to the return to manufacturing", and claimed that through the development of high-end manufacturing, reconfigurable manufacturing global competition and reshape the manufacturing industry competitive advantage, accelerate a new round of Global trade and investment of a new pattern. Some developing countries are speeding up the planning and layout, and actively participate in the global industry division of labor, and capital to undertake industrial transfer, to expand the international market space. China’s manufacturing industry is facing severe challenges in developed countries and other developing countries "two-way extrusion". In this context, the State Council issued "China manufacturing 2025", put forward to adhere to the "innovation driven", that is, to by improving manufacturing industry total factor productivity to achieve sustainable growth in manufacturing, and financial elements in the innovation economy plays a vital role, especially financial agglomeration centers such as Silicon Valley in the United States to local enterprises’ innovation plays a great role in promoting. Therefore, on the financial agglomeration level and manufacturing industry to a higher level of development of the Yangtze River Delta as the object of study the financial agglomeration and making the relationship between industry total factor productivity has special theoretical and practical significance to promote the financial reform and the construction of the manufacturing power.In this paper, on the basis of the existing literature, analyzes the influence mechanism of financial agglomeration of manufacturing tfp. Selected indicators of each city financial agglomeration from three aspects of financial development scale, economic development level and the financial level of outward development by using factor analysis method. Calculates on the Yangtze River Delta region 16 cities 2003-2013 manufacturing total factor productivity change by adopting DEA Malmquist productivity index, by using the dynamic panel model, empirical study of the Yangtze River Delta region overall financial agglomeration of manufacturing industry total factor productivity growth and decomposition of(technical progress change, pure technical efficiency change scale efficiency changes) effects. The empirical results show that: Overall, the financial agglomeration can have a significant impact on the total factor productivity of manufacturing industry, and this effect is mainly through the achievement of total factor productivity and technological progress, followed by pure technical efficiency change, the economies of scale. The financial agglomeration is mainly through technological innovation to improve the effect of manufacturing industry tfp. At the same time, according to the urban 2003-2013 annual total factor productivity growth rate of 16 cities were grouped and divided into growth faster before eight cities and slower growth in 8 cities, the study on the different types of urban financial agglomeration effect on manufacturing TFP don’t, grouping empirical results show that in the total factor productivity growth faster before eight cities, financial agglomeration is mainly influence the growth of total factor productivity by improving the pure technical efficiency is the efficiency of enterprise management, and in total factor productivity growth slower after eight cities, financial agglomeration is mainly influence the growth of total factor productivity by improving the efficiency of scale economy. Through the comparison of groups, the current financial agglomeration is mainly realized by improving the pure technical efficiency and economies of scale to achieve the total factor productivity growth of manufacturing industry. But the manufacturing industry sustainable growth depends on the technology progress, this paper provide the relevant recommendations at the end to promote manufacturing industry in the Yangtze River Delta technology progress, thus promoting the Yangtze River Delta manufacturing industry total factor productivity growth,to achieve innovation driven manufacturing industry.