Chengdu Financial Industry Concentration Degree Of Influencing Factors

With the influence of economic globalization, financial resources will accelerate to flow in a specific area. The agglomeration of financial industrial is an inevitable trend with the development of the financial industry. The accumulation of financial industry could be seen at more and more places wherever from the city of London in the United Kingdom to New York in the United States, and from Tokyo in Japan to Beijing and Shanghai in China. As an important city in the field of financial development among the western cities in China, Chengdu has formed the agglomeration of financial industry. This phenomenon has created favorable conditions for the development of the financial industry and economic growth in the west part of China. Therefore, there would be significant values for the in-depth study of the financial industry agglomeration in the City of Chengdu whatever in terms of theory research and practical operations.Based on the summary and research on the theory and measurement method of the financial industry agglomeration, the current paper firstly quantitatively calculates the financial industry agglomeration degree in Chengdu by using the location entropy method. On the whole, the city of Chengdu has formed the financial industry agglomeration with the characteristics of government support, effective supply of human resources and strong innovation ability in the field of financial industry. Meanwhile, these characteristics will contribute a good performance of financial industry agglomeration in Chengdu. Secondly, theoretical analysis has been carried out about influence factors of financial industry agglomeration in Chengdu. The results validate that the influence factors exhibit good performance while the level of labor force and industrial development show a moderate performance which hinders the improvement of the agglomeration. Thirdly, a quantitative analysis on the influence factors of financial industry agglomeration in Chengdu is implemented. The multiple regression model is established based on the explained variable and the explanatory variable which represent the degree of financial industry agglomeration and influence factors respectively. According to the relevant data from the year2004to2011, the least squares method is used to estimate the model, and the significance of various influence factors is examined primarily based on the variable t. The levels of economic development, opening up, technical innovation and fixed investment have a significant impact on the degree of financial industry agglomeration in Chengdu, in comparison with the levels of labor force and industrial development which do not exert an important influence. Finally, based on the analysis of financial industry agglomeration in conjunction with the results of theoretical and quantitative analysis, a series of suggestions are presented to enhance and improve the level of financial industry agglomeration in the city of Chengdu.