Research On The Formation Mechanism Of The Financial Industrial Agglomeration And Its Economic Effects In Jiangsu Province

As the economy of China continues to develop and so does the financialindustrial, the financial industrial agglomeration has become a common economicphenomenon. The active play of financial industrial agglomeration effect, forming abenign interaction pattern with regional economic growth, those have thegovernment’s attention to make policies. This paper summarizes the relative researchof both home and aboard about industrial agglomeration theory, financialdevelopment theory, location theory and regional economics theory, the scale ofeconomic theory, finance geography theory, the theory of the financial system, fromthe financial ecological environment theory with Chinese national conditions, usingsystem dynamics analysis, to summarize the way of the formation mechanism of theregional financial industrial agglomeration and economic effects that play.Meanwhile, the paper use data of Jiangsu Province as a sample, whose economyis relatively developed, made empirical measure of the2000-2012annual financialecological environment score and situation of financial industrial agglomeration inmajor cities of Jiangsu Province, verified from the horizontal and vertical couplingrelationship between them. In addition, this paper use Nanjing city’s data as anexample, to verify the financial industrial agglomeration positive effect on regionaleconomic growth. This paper draw the various cities ranking, also argues that whileNanjing as an "implied message" hinterland of Jiangsu Province, has the bestfinancial environment and financial industrial agglomeration, should serve as aregional financial industrial agglomeration growth pole, governments at all levelsshould also introduce policies and measures to improve the financial environment,and promote the development of regional financial industrial agglomeration, so that tocreating a virtuous cycle with economic growth.