The Influence Of Financial Agglomeration On Economic Growth

After long time of development,financial forms spatial agglomeration situation.Research has shown that financial agglomeration has become a way of regional economic growth.Banks of Shanxi in the history of financial development once owned a brilliant record,but in modern financial rapid development,Shanxi finance fall behind on the road of innovation and is unable to give full play to the agglomeration economic effects.For economic development of Shanxi region,it has important practical significance to study financial agglomeration situation in Shanxi and the financial agglomeration effect on economic growth.In the past few decades,the Chinese and foreign scholars conducted a lot of research on financial agglomeration theory and enriched the theory of financial agglomeration.In Shanxi area,the financial agglomeration has its own special cases and laws.The first thing is to choose the ideal financial agglomeration degree measure of 11 cities in Shanxi Province in 2008-2015 financial agglomeration degree for description.In the empirical aspect,we mainly study the situation of financial agglomeration effects on economic growth.This paper selects 11 cities of Shanxi Province from 2008 to 2015 based on the related data and builds simple nonlinear effect model and panel threshold effect model,and then to return.Finally,this paper provides policy suggestions for improving the efficiency of financial resources in Shanxi Province,the reasonable allocation of financial institutions and financial agglomeration effect into full play.The study finds that financial agglomeration on economic growth is not a simple linear relationship,but the "inverted U" curve relationship.After reaching a limit,financial agglomeration will bring negative effects on economic growth.Further empirical finds that at present,the development of the Shanxi financial agglomeration degree has not yet formed the threshold transformation effect,that is to say,financial agglomeration level in Shanxi Province is at the "inverted U" rising stage.Shanxi financial agglomeration is to promote economic growth now,but it is important to note that the empirical results show that the effects of all the samples is not big with the improvement of financial agglomeration level.As its level unceasing enhancement,the financial agglomeration of promoting effect on economic growth will be more obvious.Above all,to substantially improve the level of financial agglomeration of Shanxi Province,Shanxi provincial government must develop a reasonable financial development strategy.For promoting the development of financial industry by itself,improving financial ecological environment is very necessary.In view of the problems of financial agglomeration in Shanxi province,this paper sorts out the causes,influencing factors and positive and negative effects on economic development,and summarizes the theory of regional economic growth effect of financial agglomeration,and has some innovation at the theoretical level.On the empirical aspect,we establish the panel threshold model of financial agglomeration degree of Shanxi province,test the promotion effect of financial agglomeration level on economic growth,and the difference of the level of financial agglomeration on this economic effect,rather than simply study the effect of financial agglomeration,more comprehensive,has a deeper reference to policy research.