Determinants Of Financial Agglomeration Of The Yangtze River Delta

China’s Yangtze River Delta region as one of the most important fastest-growing economic circle, played a key role in the economic development and economic restructuring process of China. Development and agglomeration of financial industry are closely linked to regional economic development and restructuring. In the current critical period of economic restructuring in China, how to play the financial industry as a modern service industry core is an important proposition. Therefore, the main purpose of this paper is to explore the status quo and the influencing factors of the financial industry gathering in the Yangtze River Delta, showing the direction and significance of the influencing factors, and give advice in view of the difference of the urban economic structure and characteristics.The paper firstly presents an overview economic and financial development of16cities in the Yangtze River Delta from different angles, then carries out empirical testing from two aspects:One one hand, panel data analysis has been done to examine the direction and significance of each of the external factors which affecting the financial gathering. The main factors include information infrastructure、government level、real Industrial agglomeration、talent pool、foreign trade and service Industrial agglomeration; On the other hand, EG cointegration test and Granger Causality tests have been carried out to reveal the financial radiation and competition relationship between Shanghai、Jiangsu and Zhejiang. Because radiation and competition are also factors leading to regional financial agglomeration. The empirical results show that information infrastructure、government level are the most important factors in promoting financial agglomeration; financial agglomeration relates to real industry agglomeration in a inverted U-shaped relationship, which sheds light on the16cities’ differences in economic structure; factors like Talent pool (which is measured by the scale of university students)、foreign trade and service industry agglomeration are all positively related to financial agglomeration; However,when the talent pool is measured by the scale of financial practitioners, the Empirical results disobeys the hypothesis, which illustrates that it is the quality of labor force that really matters in financial agglomeration process. Above those results,a lot of measures have been provided for government and financial institutions as the final part.