Study On The Effect Of The Financial Agglomeration Within Wuhan Metropolitan Area On The Economy Growth

Finance plays an important role in the modern economy.With the rapid development of economic globalization and financial globalization, which accelerate the flow of financial resources among regions.This causes financial institutions and financial activities assembled in a specific regional.The financial industry agglomeration promotes regional economic growth by the financial agglomeration effect and the financial diffusion effect.Wuhan Metropolitan Area is the core of regional economic development of Hubei and also an important strategic pivot central economic rise.Wuhan City Hall has formulated "Wuhan space regional financial center planning", intends to build a national professional financial center. Although the Wuhan financial industry agglomeration has taken shape,but it’s much worse than the national finance center. The scale of the financial industry agglomeration is smaller, the level of the financial resources is lower and the degree of polymerization of financial resources is not high.The main purpose of this paper is to make theoretical analysis and empirical test on the economic growth effect of financial industry agglomeration of Wuhan city circle, in order to provide suggestions for improving Wuhan financial industry concentration and promoting the Wuhan city circle economic development.The most important purpose is to make a regional financial center in Wuhan.The article is focused on the the Wuhan city circle. On the basis of in-depth analysis on the financial industry agglomeration theory, the regional economic growth theory, the ways of financial industrial agglomeration promote the regional economic growth and mathematical model. According to the present situation of Wuhan city circle of economic development and financial development,this paper selects years1990-2013 as the sample data,then it uses ADF test, cointegration test, Granger causality test to research the economic growth effect of financial industry agglomeration of Wuhan City Circle.The empirical results show that the financial industry gathering in Wuhan and Wuhan conomic growth,Huangshi conomic growth, Xiaogan conomic growth, Huanggang conomic growth, Xianning conomic growth has the long-term stable equilibrium relationship.Wuhan city banking industry plays a significant role in promoting regional economic growth,but the securities industry and the insurance industry on regional economic growth promoting effect is not obvious.This shows that the financial industry gathering in Wuhan not only promote economic growth in the region, but also drive economic growth in surrounding areas. Finally, on the basis of theoretical analysis and empirical test,I will put forward some countermeasures in three aspects. The main purpose is to strength the Effect of the Financial Agglomeration within Wuhan Metropolitan Area on the Economy Growth.