The Influence Of Financial Agglomeration Within Wuhan Metropolitan Area On The Economy Growth

Under the background of economic and financial globalization, financial resourcesnow flow between different regions and states with an unprecedented speed. As forfinancial institutions, they are more willing to achieve the cooperation and cluster by wayof coordination between corporations, and meanwhile, extend their business fromcooperation just between banks to the spatial agglomeration and business outsourcing formore variety of financial institutions. The cluster of financial service industry has becomeone basic form of modern financial industrial organizations.Both the internal and external scale effect of financial resource cluster enable thecoordinated development of financial industry within the cluster region by sharinginformation and cost, guide resource allocation to satisfy the capital demand of traditionalindustries, and optimize regional industry structure to promote traditional industrialagglomeration and regional economic growth. Meanwhile, traditional industrialagglomeration in turn would boost financial demand, optimize financial ecology, andprovide foundation for further financial cluster.Base on the absorption and summary of research findings concerning the spatialeconomics and financial geography, this paper analyses the influence of financial clusteron regional economic growth by the use of LS model. The influences are divided to twotypes, that is, the growth effects on core areas and radiation effects on surro unding areas.Further, this paper has conducted empirical analysis in consideration of financial clustercharacteristics and situation of Wuhan metropolitan area. The results of Co-integrationTest and Granger Causality Test show a steady long term relatio nship both betweenfinancial cluster and core areas, and between financial cluster and surrounding areas. Inaddition, financial cluster is the Granger Cause of regional economic growth, whichfurther confirms a significantly positive influence of financ ial cluster on the regionaleconomic growth.On the basis of theoretical model and empirical test, combining with the reality thatoverall scale of Wuhan metropolitan area is not large and the influence is weak, this papergives some implications for further propelling financial resource gathering andconstructing Wuhan into a regional financial cluster center.