The Relationship Between Financial Agglomeration And Industrial Structure Upgrading In Tianjin

Along with economic globalization, the financial globalization and the development of information and technology, finance has developed into the core of the modern market economy. The financial agglomeration phenomenon has become increasingly prominent, and it gradually become the main direction of development of modern finance. Through playing agglomeration effect and scale effect, the financial agglomeration has promote industrial structure optimization and upgrading in the gathering area. On the other hand, in the continuous process of the industrial structure adjustment, it brings more favorable conditions for the financial agglomeration, and promotes the development of the financial agglomeration.Tianjin is located in the center of the Bohai Economic Rim and the junction of Five tributaries of Haihe in North China Plain, and it is the the biggest coastal open city in north China, whose good location advantages has created a lot of innate convenience for the region’s economic development. In addition, the State Council seted up the Binhai New Area as a financial reform pilot in2006, the policy advantage led to the rapid development of Tianjin’s financial and economic development.Tianjin is the paper’s study object, and the paper explores the association between Tianjin financial agglomeration and the upgrading of industrial structure based on the perspective of financial agglomeration. This paper first describes some related concepts of the financial agglomeration and the upgrading of the industrial structure, and analyze the theoretical mechanisms of the association between the financial agglomeration and the upgrading of industrial structure. Then, using the combination method of quantitative analysis and qualitative description, this paper describe the status of Tianjin’s financial industry and use the SWOT method. Through analyzing the status quo of industrial structure, some problems are pointed out. In addition, this paper measure the degree of the financial agglomeration in Tianjin by using entropy index. And select the appropriate evaluation indicators of Tianjin financial agglomeration and the upgrading of industrial structure to build the error correction model. The result showes that the financial cluster in a certain extent promotes the optimization and upgrading of the industrial structure in Tianjin. Among them, the role of the banking sector, followed by the securities industry, the role of the insurance industry is not obvious. Then an empirical test, Granger causality test the association between Tianjin financial agglomeration and upgrade the industrial structure and come to the upgrading of the industrial structure to some extent contributed to the financial agglomeration. Finally, on the base of the theoretical and empirical research above, the paper proposes some policy recommendations to deepen the Tianjin financial agglomeration and the upgrading of industrial structure.