The Financial Industry Agglomeration Effects On Regional Economic Growth

Since the1970s, the way of production and trade for financial institutions slowlybegan to coordinately develop between enterprises. From the very beginning ofindividual bank’s concentration to the later formation of financial holding company,then become to the formation of many financial institutions in different types now,thus, it should not be ignore for financial industry agglomeration. Recently, the key ofeconomic development is financial industry, which played a very important role forpromoting economic development, furthermore, it is providing that financial industryis useful for the development of regional economic. Financial industry agglomerationrefers to through the financial resources geographically coordinated configuration, thefinancial institutions, financial markets, financial intermediaries, financial informationand technology, financial instruments and its functional health financial resources etcformed a high agglomeration in space and time. Currently, the basic organizationstructure of financial industry has evolved into the financial industry agglomerationforms.This paper forcing on the relationship between financial industry agglomerationand regional economic growth to launch theoretical analysis and empirical research.Firstly, there is a introduction of research background and significance, some relativeliteratures, thinking, method and innovation in the first part. Secondly, our researchdid a deep theoretical analysis between financial industry agglomeration andeconomic growth, which mainly including the characteristics and economicbackground of financial industry agglomeration, the coupling of financial industryagglomeration and regional economic growth, and the way of financial industryagglomeration promoting the development of regional economic. Thirdly, this paperputs forward the measure of financial industry agglomeration and the distributionstatus of financial industry agglomeration, including the distribution status of the maincity and the main economic circle. And than, there will be a case study about Yangtzeriver delta economic circle, using Unit root test, Hausman test and the other measuremethods to launch empirical tests for the relationship between financial industryagglomeration and the regional economic growth, the empirical test made fixedeffects model passed, this paper draw a conclusion that financial industryagglomeration can promote the development of regional economic significantly,moreover, this paper analyzed the problems involved in financial industry agglomeration. Finally, this paper provides some policy suggestions about how toimprove the level of financial industry agglomeration, mainly including promotingmacroeconomic reform, encouraging innovation and perfect financial market system,improving the external environment for financial industry, and cultivating financialtalents actively.