A Study About The Impact Of Financial Agglomeration On Regional Economic Growth

Schumpeter(1911),Goldsmith(1969)and King&Levine(1993)argue that financial development can promote economic growth from a number of perspectives,but from the 1980 s onwards,with the development of economic integration and financial globalization,Institutions began to gather in a few central cities,financial agglomeration has become the basic form of modern financial industry organizations,financial agglomeration has changed the way the financial industry to promote economic growth.On the one hand,financial agglomeration due to the particularity of its industrial organization form will certainly speed up the innovation of financial instruments and financial services.On the other hand,the spillover effect of financial agglomeration due to geographical proximity is a fact that can not be ignored.Based on the re-derivation of the theory of endogenous economic growth,this paper analyzes the mechanism of financial agglomeration influence regional economic growth from the perspective of financial innovation effect and spatial spillover effect,and puts forward the theoretical hypothesis.Then,this paper chooses the data of 31 provinces in China from 2004 to 2015 as the research samples.The method of location entropy and factor analysis is used to measure the degree of financial agglomeration in the provinces of China.It is found that the distribution of financial resources in different provinces Very uneven,different provinces of the degree of financial agglomeration is very different,most of the provinces of the degree of financial agglomeration are showing an upward trend year by year.Finally,based on the theoretical hypothesis proposed above,this paper constructs the empirical model from the financial innovation effect and the spatial spillover effect respectively.Financial innovation effect perspective,the financial industry as a whole and the banking industry,insurance industry,securities industry,the formation of three sub-sectors of the different empirical model,the GMM method for regression analysis.The empirical results show that the impact of financial agglomeration,banking agglomeration and insurance industry agglomeration on regional economic growth is positive,while the accumulation of financial professionals and the impact of securities industry agglomeration on regional economic growth are negative;the estimated coefficient of financial innovation Which is positive in all models.The coefficient of cross-item of financial industry agglomeration degree and financial innovation is positive and significant,which indicates the overall agglomeration of financial industry and the aggregation of banking industry Through the impact of financial innovation and thus promote the regional economic growth,in line with the theoretical assumptions presented in this paper.In this paper,we study the Moran's index and draw the Moran's scatter plot.It is found that there is a positive correlation between the economic growth and the financial agglomeration between the provinces in our country.On this basis,we use the spatial measurement for regression analysis,It is found that there is a significant positive spillover effect on the economic growth between provinces in our country.China's financial agglomeration has played a role in China's economic growth through the geographical spillover effect.