Research On The Spillover Effects Of Financial Agglomeration On Regional Economic Growth

Along with the development of integration with the global economy going forward,financial resources are highly concentrated among the regions.And this phenomenon has greatly promoted the economic growth of the country.China has imbalanced financial and economic development.It’s significant for our government to find solutions to balance financial development and promote regional economic healthy growth.The existing paper mostly considers the spillover effects of financial agglomeration on regional economic growth from the perspective of the three traditional financial industries such as banking,securities and insurance.However,with the development of China’s financial markets,some new financial branches such as shadow banking emerge and boom.In view of this,this paper includes the shadow banking in the research scope,establishes an analytical framework and mathematical model for regional economic growth based on financial agglomeration,and tests the spillover effect of financial agglomeration on regional economic growth by using SDM model.This paper enriches the existing research and provide theoretical support and policy recommendations for China’s financial and economic development.Firstly,this paper points out the background and builds a research framework.Secondly,we summarize the existing research from the aspects of the connotation of financial agglomeration and the effect of financial agglomeration on economic growth and point out deficiencies.Then,this paper analyzes the causes of financial agglomeration and specifically states the mechanism of financial agglomeration on regional economic growth through financial agglomeration effect and financial diffusion effect,which lays the foundation for the theoretical analysis of this paper.Next,from the aspects of banking,securities,insurance and shadow banking,this paper draws the quantile map and calculates the entropy of the financial branches of each province,analyzing the state of the provincial financial agglomeration.The results show that China’s banking,securities,insurance,and shadow banking resources are mostly concentrated in the eastern coastal provinces.There is a clear phenomenon of financial agglomeration in our country.The level of banking and insurance industry agglomeration has declined slightly and the degree of agglomeration of shadow banking has risen.The Yangtze River Delta and the Bohai Sea region can promote the degree of financial agglomeration in the surrounding areas.However,the spillover effects of financial agglomeration in the Pearl River Delta region on the surrounding areas are not significant.In the end,on the basis of provincial panel data from 2014 to 2017,this paper uses SDM model and spatial effect decomposition method to empirically test the effect of financial agglomeration on regional economic growth.The research results show that the agglomeration of shadow banking not only promotes local economic growth,but also stimulates economic growth in surrounding areas.At the same time,the agglomeration of banking,securities,and insurance industry resources can also promote regional economic growth.And the agglomeration of banking resources plays the most significant role in promoting regional economic growth.At the same time,the paper carries out regression tests on the East,Central,and West regions and finds that the effects of financial agglomeration on regional economic growth are different in different regions.Based on the theoretical analysis and empirical results of this paper,this paper proposes practical and feasible policy recommendations from the three levels of the state,local government and financial institutions.