An Empirical Study Of Xi’an Financial Industry Agglomeration And Economic Growth

Financial center is the financial industry cluster development theinevitable result. With the great promotion of Go-West Campaign inChina, northwest regional economic growth for the demand for financialservices is growing wider, and Capital Xi’an as the five northwesternprovinces’ leading provinces-Shaanxi Province, the political, economicand cultural center, should vigorously promote the accumulation offinancial industry, making efforts to build itself the financial center forthe northwest region, in order to provide better and more efficientfinancial services, not only for Shaanxi province, as well as the entireNorthwest region’s economic growth.In this thesis, I chose Xi’an as my study area. The data on thefinancial industry and economic growth in Xi’an is collected from “Xi’anStatistical Yearbook,2003-2012", and "China Financial Yearbook2003-2012”. I described the financial industry of Xi’an with four indexes:Enlargement of financial institutions, Product amount of financialindustry, Development of financial transactions and opening up offinancial industry of Xi’an. I found some disadvantages among ouranalysis above. Then I did calculation of the degree of financial industryagglomeration. As to the development of Xi’an economy, three indexesare been used here, they are GDP, Product amount of Three industry andPersonal income. Along with the analysis above, I assumed that financial industry agglomeration and economic growth in Xi’an are positive related.And next, with collected authoritative data and STATA, I did a empiricalresearch with ARIMA model. According to the empirical results and theactual development situation of financial industry agglomeration in Xi’an,some relevant policy recommendations are proposed, in order to promotethe financial industrial agglomeration and then provide a steady power forthe economic growth of Xi’an. Besides, the empirical study has also acertain reference value to the capital city of less developed areas, such asLanzhou, Chongqing etc.. In addition, in the first part of main body, Iadopted location quotient measure to measure the level of financialindustry gathering in Xi’an, this is a new attempt.We had two conclusions:(1) According to empirical results, thecoefficient of LQijis0.1612928, and the value of P is0.079. This meansthat the financial industry agglomeration did have a positive relatedrelationship with economic growth;(2) After the empirical study part, thisthesis will talk about how to promote the development of financialindustry agglomeration in Xi’an. I proposed four policy recommendations:First, improving the system of financial organizations in Xi’an, includingbanking, securities and insurance industry; Second, improving theoperational efficiency of the financial markets, the efficiency of systemand stuff are included; Third, improving the capacity of financialinnovation, especially the innovations of financial products and financial systems; Fourth, optimizing the financial environment of Xi’an,providing a good external environment for the development of financialindustry agglomeration in Xi’an.