The Spatial Econometric Analysis Of Financial Industry Agglomeration In Shandong Province

The financial industry is the endogenous variables and the core elements of economic development.The financial agglomeration has become the inevitable result and the practical need of modern regional economic development. Financial industry of Shandong province is developing steadily, but not high concentratively compared with other developed provinces and cities.This article is based on the dynamic mechanism of financial industry agglomeration, constructing the dynamic system of finance industry clusters. Discussing the internal and external reason on which have influence the financial industrial clusters. We compare Ji’nan with Qingdao. Analyze the characteristics of spatial agglomeration according to the current situations of banking industry, securities industry, insurance industry in Shandong province. In order to make suggestion to promote financial industry agglomeration and develop more pertinently, the author makes an empirical test on the influence factors of financial industry agglomeration through the spatial panel data model and analyses the influence degree of every impact of factors.We research and find that it is not one driving force or a single factor which plays a role in the financial industry agglomeration. However, the trigger is pulled by the external and the internal force combined with multiple dynamic factors together. The development of financial industry in Shandong province moves forward steadily. The Index of Moran’s I indicates show that the agglomeration level of banking industry and insurance industry is low and not obvious, otherwise the dispersion level of securities industry is low and not obvious. Meanwhile, the Moran scatter plot and Location Quotient show a coexist phenomenon of financial industry in Shandong Province: capital city—Ji’nan, coastal area led by Qingdao and the southwest area.The result of spatial fixed effect model test draws the conclusion that financial market size and geographic location factors have obvious positive effect on the financial industry agglomeration of financial institutions. Business level and the level of economic development also take an active in the financial industry agglomeration. However, we still face the low level of financial innovation, the lack of talent, government guidance and infrastructure problems.