Research On Influence Of Finance Agglomeration On Economic Development Of Coastal Regions

In recent years, while the external environment is volatile, China’s nationaleconomy still maintained a rapid growth, accompanied by gathering of financialinstitutions and financial resources, which has significant impacts such asconcentration effect and diffusion effect on the financial industry itself and thenational economy.This thesis chooses11coastal regions and Beijing as the subject of study, andaims to reach the empirical inquiry of influence of finance agglomeration oneconomic development by quantitative analysis. In2010, China’s eastern coastal areasaccounted for44.49%of the population, created54.89percent of the country’s GDP,and accounted for54.74%,54.06%percent of the deposit balance and loan balance.Throughout the domestic and international financial agglomeration researchstatus quo, both the establishment of theoretical system and empirical test lag behind,and most of the research focus on qualitative analysis，which has not yet reached thesame conclusion.In view of this, although the total economy of the coastal area shows a greateradvantage, there is still potential growth space, and due to historical reasons, policyfactors, resource endowment conditions and the administrative divisions, theeconomic development appears disequilibrium phenomenon. Therefore, to achievecoordinated growth, we need to pay attention to the economic growth effect offinancial agglomeration.Firstly, this paper analyzes financial agglomeration of coastal regions using themeasurement of concentration of industry, H-Hirschman index, space Gini coefficient,entropy index and EG index, and further estimates financial agglomeration compositeindex by entropy method. Then, this paper draws simple conclusions, which lay thefoundation for financial agglomeration model below. This paper chooses per capitaregional GDP as a proxy variable, EDI released by the State Statistics Bureau, percapita human capital, per capita patents granted, FAI as the explanatory variables, andexplores the influence of financial agglomeration on economic growth of coastalregions, which can give appropriate policy advice and recommendations for financialagglomeration development. This paper hopes to explore the influence of financial agglomeration oneconomic growth of coastal regions, and choose the appropriate mode of financialagglomeration, which can lead to the positive interaction between economic growthand regional financial agglomeration development.This paper uses theory study, data model and empirical study, combined withqualitative and quantitative research method, and builds the evaluation model of theinfluence of financial agglomeration on economic growth, which is tested by actualdata, showing that the model has practical value to improve financial agglomerationdevelopment and even economic development.