An Analysis Of The Relationship Between Financial Agglomeration And Regional Economic Growth

With the rapid development of the global economy, the financial industry has been increasingly concerned by the domestic and foreign scholars due to its unique position in economic activities in recent years. Generally speaking, the relationship between financial agglomeration and economic growth has been one of the most popular research subjects in the fields of economy. Scholars all over the world are now in deep research about the relationship between these two explanatory variables, which is to hope the conclusions of the research can promote the development of regional economy. Based on that, this article are analyzed from different perspectives to find the relationship between the regional economic growth and financial agglomeration in following aspects including spatial spillover effect, influence mechanism, coupling analysis over 31 provinces, municipalities and autonomous regions in China.In this paper, we firstly review and summarize the references of financial agglomeration concept and the theory and empirical analysis of financial agglomeration and regional economic growth. After the comprehensive studies on related references, this paper accordingly made an improvement to the shortcomings of the existing literature.According to the research background, my essay decide to make further improvement. Combined with the existing reference, the paper firstly describe the relationship between financial agglomeration and economic development in theoretical perspective which correspondingly includes the forming reasons of financial agglomeration,the influence factors of financial agglomeration, the deductive route of financial agglomeration in the development process and the mechanism of the effect of financial agglomeration on regional economic growth.The following chapter is the empirical part of this paper and the content of the empirical part is based on the theoretical analysis from above. Firstly, the comprehensive index system of financial agglomeration is constructed and principal component analysis is used to determine the principal component factors of financial agglomeration. Secondly, The paper decide to follow up the empirical research by establishing the economic growth equation. The spatial dependence of the variables is determined by the spatial autocorrelation, and the effect mechanism of each other is determined by the estimated values of the parameters. Moreover, we can draw a significant spatial spillover effect of financial agglomeration through the empirical results, which also has a significant impact on economic growth. Based on that, this paper further employ the wilson model to calculate the radiation range of the financial agglomeration in quantitative way. In this paper, the coupling analysis method is used to finally determine the correlation degree of the relationship between financial agglomeration and regional economy.The final result of empirical analysis shows that there are not only spatial spillover effect in China’s financial agglomeration and regional economic growth but also the regional difference in radiation range. Besides, each factor in the financial industry agglomeration internal system also has different impact on economic growth. Finally, according to the empirical results, this paper gives the relevant policy recommendations from the aspects involving financial resources flow, financial innovation, financial efficiency and opening to the outside world.