Financial Agglomeration And Impacts On Regional Economic Growth

Reform and opening-up policy drives a significant growth in Chinese economy. Meanwhile, the unbalanced status of regional financial development has become an issue that is paid close attention to extensively by the society. Scholars presented the researches on reducing the financial gaps among regions and boosting the regional coordinated development. In these journals, scholars explored economic factors and analyzed the impacts of various factors on the regional financial growth. As an effective measure, industrial agglomeration is attaching great importance to enhance the regional competitiveness. However, the majority studies of industrial agglomeration were focused on the area of industry, especially on the manufacturing industry, and only few studies investigated influences of financial agglomeration on the economic growth.The paper researches the anxo-actions of financial agglomeration on regional economic growth from both the theoretical aspect and the aspect of empirical tests. Firstly, gives the concept of financial agglomeration based on the theories of industrial agglomeration, explains the growth motivations of financial agglomeration, and also presents the anxo-actions of financial agglomeration on regional economic growth. Secondly, based on the current scenario of domestic financial agglomeration and regional economic growth, analyzes a real reflection of regional economic growth and financial agglomeration, and the coefficient of correlation and spatial pattern between the two variables. Relations between financial agglomeration and economic growth are found by the analysis, also finds that regional economic growth rates have spatial autocorrelation, and it is necessary to use spatial econometrics to evaluate economic growth. Finally, by using spatial panel data model to investigate the impacts of financial agglomeration on regional economic growth, results shows that factors of labor force, capital stock and financial agglomeration have positive correlation with economic growth. Moreover, this part indicates financial agglomeration has significant impacts on economic growth, and also can drive and boost the regional economic growth. That is, to reduce the gaps of regional economic growth could be considered from modifying the current situation of financial agglomeration. The conclusion makes a new solution to promote a coordinated development of regional economy.