Impact Of Financial Agglomeration In Industry Structure Upgrading In Chongqing

With the development of economic financialization, economic globalization and information technology, the agglomeration has become a basic form of the modern financial industry organizations, financial agglomeration has gradually become the main direction of the modern financial industry.The establishment of financial agglomeration area, on the one hand it is based on the sound regional financial operation mechanism, on the other hand it plays agglomeration effect and scale effect for its own. It produced a far-reaching impact to regional economic development and industrial structure upgrading. Since Chongqing was established as a municipality directly under the central government in 1997, with its unique policy advantage and geographical advantage, the national economy has been developing rapidly and the industry structure has been upgrading constantly. Chongqing City, as the only municipality in the western area of China, then it was approved the establishment of a national urban and rural comprehensive reform pilot area. The deposit and loan balances of all financial institutions, the numbers of outlets of financial institutions and the number of employees in financial indications of Chongqing are among the best in the central and western regions. The trend of financial agglomeration is increasingly obvious. Along with the fast growth of the national economy, the development of the financial industry and the continue gathering of financial resources, the financial agglomeration has brought opportunities for the economic development of Chongqing, and will promote the economic globalization and industrial structure upgrading. This paper is based on the perspective of financial agglomeration, and draw on the experience of mature domestic and foreign researches. In this paper, it discusses the empirical analysis of Chongqing financial sub industries to the upgrading of the industrial structure, and its influence on the effectiveness of verification. This paper makes a comprehensive scientific study of the financial industry agglomeration factors effect on the industry structure upgrading, in order to make scientific policy guidance for promoting the financial industry to develop rapidly and the industrial structure to adjust effectively.Main points:(1) theoretically summarizing the effect of financial agglomeration, the factors to influence the upgrading of the industrial structure, and the mechanism of influencing the industrial structure upgrading by financial agglomeration. (2) Analyzing the overall condition, industry distribution characteristics and regional distribution characteristics of financial agglomeration in Chongqing, then evaluating comprehensive index of financial agglomeration by using factor analysis, and making quantitative analysis and qualitative description for the current situation and evolution path of industrial structure. (3) Measuring the financial sub industries by calculating the location entropy, researching the financial agglomeration has an effect on the industry structure upgrading in the long term equilibrium through the cointegration test, using the error correction model to analyze the financial agglomeration has an effect on the adjustment of industrial structure in the short term, and carrying out Granger Causality test to inspect the relationship of financial agglomeration and the industrial structure upgrading, which proves that the different financial sub industry makes different influence to the industrial structure upgrading. (4) Putting forward relevant policy recommendations to promote the industrial structure optimization in combination with the current background of Chongqing city.Conclusions:(1) Since Chongqing became a municipality, the financial agglomeration degree has been more and more high. (2) Comparing the financial agglomeration degree of Chongqing with the other three provinces in the southwest region, found that the financial agglomeration degree in Sichuan province is the highest, followed by Chongqing City, Yunnan Province, and Guizhou province ranked last. (3) In financial sub industries of Chongqing, the impact from banking industry to the adjustment of the industrial structure is the greatest of all. (4) The influence of securities market on the industrial structure upgrading is showed not significant. (5) The insurance industry agglomeration brings "good" restrain to the upgrading of the industrial structure.Suggestions:(1) Strengthening the construction of regional financial center, developing radiation function of the financial agglomeration. (2) Strengthening the financial innovation, deepening the reform of the financial system. (3) Improving the service efficiency of the credit, playing a supporting role in the credit market. (4) Making a development of securities and insurance market, improving the financing efficiency of the two markets. (5) Perfecting the financial space layout, making the coordinated development of urban and rural.