Study On The Impact Of Financial Industry Agglomeration On Regional Economic Growth

The financial industry is necessary for supporting the development of a country. Nowadays, international finance cooperation and financial innovation are becoming more frequent. Under the impact of these internal and external factors, the distribution and operating state of financial industry are in the process of change, which makes financial industry agglomeration turn out. Financial industry agglomeration often manifests as the agglomeration of financial resources, high frequency and high efficiency financial transactions and high financial output. It’s proven true that financial industry agglomeration can promote regional economic growth in many ways. Financial centres are always economic centres. So improving the level of the financial industry agglomeration can promote economy growth. What’s more, as a part of finance, internet finance makes financial industry change a lot. Financial industry agglomeration and its effects on economic growth may change. Given this, financial industry agglomeration phenomenon and its influence mechanism and effect on regional economic growth are re-examined. As a result, theoretical supports and policy suggestions can be obtained for financial and economic development of China, which has a creative research perspective.Firstly, after the concepts and related theories of financial industry agglomeration, economic growth and internet finance are analysed, the mechanism of the impact of financial industry agglomeration on economic growth is built. Then Principal Component Analysis is used to measure agglomeration level based on a comprehensive index system of financial industry agglomeration. Secondly, Panel Data Analysis is used to research the effect of financial industry agglomeration on regional economic growth based on provincial datas. The empirical results show that financial industry agglomeration has an obvious positive effect on regional economic growth, as well as human capital and fixed-asset investment. In the areas with low level of financial industry agglomeration, regional constraints of financial industry agglomeration on economic growth decrease. Internet finance has made the impact of financial industry agglomeration on economic growth changed. Moreover, regional characteristics of financial services weaken and economic growth gaps narrow. Lastly, Gray Correlational Analysis method is applied to get the correlative degree of P2P turnover and regional economic growth, which shows that there exists high gray correlational degree between the two variables. Besides, internet finance has cross-regional effects on economic growth.