Study On The Internal Structure Agglomeration Of Financial Industry And Regional Economic Growth

With the inter-regional flow of economic factors such as financial capital, talents and technology, business information, financial institutions began to consider the spatial distribution of regional economic factors, establishing branches and outlets in the economic core areas to obtain developing opportunities and positions, strengthening the economic strength of the financial gathering areas. In fact, banking, securities or insurance industries are agglomerated developed, especially concentrated in the country’s economic center and first-tier cities.Based on this background, we study a series of contents as follows: Firstly, in terms of the location factors, information flow, economies of scale, we summarize the domestic and foreign relevant research of financial agglomeration, establishing a theoretical framework of financial agglomeration and economic growth, which based on the characteristics of financial internal industry, in order to explain the production, motivation, characteristics, evolution and etc. theoretically, and verify the relationship between financial sub-sector agglomeration and economic growth; Secondly, this paper selects the absolute concentration of market share to display industry agglomeration status, at the same time also introduces innovation index, financial market share/GDP share, to measure the financial agglomeration relative to certain provinces. It is found that natural selection of the survival of the fittest fully exist in the gathering areas, no matter banks, securities or insurance. There is a big difference of financial sub-sector structures and the agglomeration levels. Banks’concentrations generally begin to decline, securities are highly concentrated in individual provinces, and the insurance industry with higher agglomeration levels is still the provinces which have more populations. The relationship among financial agglomerations, regional economies, industrial structures are becoming more closely, the region’s economic level and industrial structure have become the main factors influencing banks and insurance industries’agglomeration level, by comparison of the securities industry have little correlation. Thus we build a new regional economic class include three models:multi-hand type, a dollar-led and the potentials. Thirdly, we build a comprehensive analysis model include financial agglomeration, the financial sub-sector structures and regional economic growth as a whole, based on the past11years’panel data of27cities. Significant differences are found between the agglomeration levels of different sub-sectors in the same area, lower banks’ agglomerations will promote economic growth and more significant in the central and western regions; most areas of the securities industry still cannot become the main power of regional economic growth; improving insurances’agglomeration will promote economic growth. Finally, we put forward some suggestions to promote our countries’ financial coordinated development.