Research On The Relationship Between Financial Agglomeration And Regional Economic Growth

Finance is the "blood" of the national economy, finances each economic sector.Cluster is the main organization form for the development of modern finance. In the world,developed cities are the best examples of financial industry cluster, such as New York,London, Hong Kong of China, Tokyo and Singapore. In our country, there is also phenomenon of financial agglomeration, such as Shanghai as the center of the Yangtze River Delta region,Shenzhen and Guangzhou as the center of the Pearl River Delta region and Beijing as the center of Bohai Rim. Beijing-Tianjin-Hebei is the center of the Bohai Rim region, and its collaborative development has become one of the national strategies. This paper takes the Beijing-Tianjin-Hebei as research object, the relationship between financial agglomeration and economic growth as the main line, by the method of econometric analysis. The resultsshows that financial agglomeration has a positive effect on the economic growth of Beijing-Tianjin-Hebei. Thus, this paper tries to provide the theoretical support to the governments’ handling of industry layout and economic growth.First of all, this paper analyses the research status of financial agglomeration and regional economic growth, introduces the theory of financial agglomeration and regional economic growth and the financial agglomeration’s influence on economic growth.Second, taking financial agglomeration in Beijing-Tianjin-Hebei as the research object, using measurement index such as industry concentration, herfindahl index, location quotient and space gini coefficient, and principal component analysis, this paper respectively analyses the financial industry development and financial agglomeration degree based on time series data and cross section data in Beijing-Tianjin-Hebei. The results show that Beijing and Tianjin have significant financial agglomeration phenomenon. Beijing’s agglomeration degree is the biggest. Financial agglomeration degree of Hebei is lower than the average level of the Beijing-Tianjin-Hebei region. It belongs to the periphery of the regional financial center.Again, this paper analyses the relationship between financial agglomeration andeconomic growth using PVAR model, verifies Beijing financial agglomeration and diffusion effect using granger causality tests. Analysis shows that no matter short-term and long-term, financial agglomeration has a significant role in promoting economic growth in Beijing-Tianjin-Hebei, but economic growth on financial agglomeration effect is not obvious. The economic growth of Beijing and Tianjin have a positive role in promoting banking development of Beijing, while Beijing banking only has spread effect on economic growth of Hebei. The economic growth of the three promote the development of the security industry in Beijing at the same time, but the security industry has no reverse promotion to economic growth. There is no two-way interactive relationship between the development of insurance industry of Beijing and economic growth.Finally, according to the results of the above analysis, the paper puts forward strategies to develop finance industry and improve financial agglomeration of the Beijing-Tianjin-Hebei.