Research On Radiation Effect In Financial Agglomeration Of Yangtze River Economic Belt

Instead of evenly distributing production activities geographically, the globalization of production activities results in a more obvious geographical concentration of related production activities in the course of accelerating globalization. Thus in many countries, industrial cluster has emerged as a new form of business organization in the process industrialization. It becomes an important driving force of economic development for both developed and developing countries. Ever since the 1970 s, the concept of ’industrial cluster’ has been widely applied to the field of finance, which is the core of modern economy. From the establishment of few banks to the emergence of various finance holding companies, and to the agglomeration of different kinds of financial institutions and the flourishing of business outsourcing by now, the phenomenon of financial services cluster is something that cannot be overlooked.With the increasing development of information technology and communication systems, financial services clusters attract dense energy of economy like `sticky places in slippery space’. Through agglomeration effect, economies of scale and information spillover effect, financial services clusters have contributed greatly to the economic development of local and surrounding areas, and have become one of the main forces that promote regional economic competitiveness. The past few years witnessed the win-win results of the cooperation between the Yangtze Rive r Economic Belt and the development of financial industry. The success of regional financial cooperation of has drawn considerable attention. Therefore, the financial agglomeration of the Yangtze River economic belt and its effect on regional economic growth has become the focus of this research. The research is also a new bright spot in the study of industrial clusters.The mutual relationship between financial market development and economic growth is one of the core areas in modern economics research. When it comes to the level of regional development, research on the level of financial cluster and its impacts on regional economic growth, and the relationship between financial services cluster and regional economic growth appears to be even more important. Aiming at promoting the development of the Yangtze River Economic Belt, by applying modern economics theory and econometric research tool, this research takes the level of financial development in 2014 of 11 provinces and cities along the Yangtze River Economic Belt as the research object, from both financial centralization and financial diffusion to create an index of financial agglomeration. Therefore, central provinces and cities can be stood out. By using Wilson maximum entropy model and gravity model, provinces and cities under the radiation of financial agglomeration can be measured. Finally, by using VAR model, ce ntral provinces and cities of financial agglomeration, and the relationship between central provinces and cities of financial agglomeration can be explored. Based on it, suggestions on the development of the Yangtze River Economic Belt from the perspective of the development of financial industry and the formation of financial center with radiation effects can be made. The main conclusions are as following: firstly, the current situation of the Yangtze River Economic Zone in the middle reaches of the financ ial agglomeration is poor. Secondly, there is not enough radiation range and intensity of financial agglomeration center. Thirdly, the central provinces and cities of financial agglomeration have positive effects on the economic growth of its surrounding a reas, but there is room for development.