A Study On The Impact Of Financial Agglomeration Externality On Economic Growth

In recent years,finance has become the core of economic development.Related studies have shown that there is an inseparable relationship between financial development and economic development.That is,financial development is conducive to promoting economic development in resource allocation and capital formation.The “agglomeration effect” refers to the centripetal force of the constant formation and expansion of this geographical space because a certain industrial or economic activity is concentrated in a specific geographical space and forms a promotion of economic activities and economic activities closer to this geographical space.Due to the rapid development of information,the financial industry has seen financial activities and the concentration of financial institutions in certain regions or cities.Whether the formation of a financial agglomeration center is conducive to the development of the financial industry in the region,whether it has an impact on the development of the financial industry in the surrounding areas and how it affects the economic growth in the region requires in-depth theoretical discussions and empirical verification.This paper uses the basic data of provincial capitals from 2006 to 2015 to classify externalities into financial externalities and technological externalities,and uses Cobb Douglas' s production function as a theoretical model to measure the impact of financial agglomeration externalities on economic growth.,the following conclusions are drawn:(1)There is a significant difference in the degree of financial agglomeration among capital cities;there is a significant difference in the extent of financial agglomeration in the East,Central,and West regions according to the geographical location of each provincial capital.(2)With regard to financial externalities,the expansion of financial output per unit area brought about by financial agglomeration has played a positive role in the flow of capital elements.The relative position of labor productivity and industrial structure have a catalytic effect on the flow of capital elements.The cost of crowding is the negative and insignificant effect of population density on capital flow.(3)As far as the technical externalities are concerned,the proportion of financial value added to the regional GDP has a significant role in promoting technological progress.The previous phase of technological advancement,the proportion of technological surveys in total employment,and the second industry The percentage contribution has a significant role in promoting technologicalprogress,and the proportion of the tertiary industry in the industrial structure has negative and not significant effects on technological progress.(4)With regard to the distance of externality of financial agglomeration,the financial externalities of financial capitals in provincial capitals are positive and around 1100 km.The most significant is that financial externalities are “inverted U”with distance changes;The technical externalities of financial agglomeration among provincial capitals are all negative in the study area and the negative externalities reach the maximum at1300 km.The technical externalities are “U-shaped” with the change of distance.(5)Due to the differences in financial development and financial agglomeration in the East,Central,and West regions,the optimal distances between financial externalities and technological externalities are different.In terms of financial externalities,the eastern region is 400 km,and the central region is600.The distance is 800 kilometers in the western region,and 200 kilometers in the eastern region,1,100 kilometers in the central region,and 400 kilometers in the western region,both are less than the optimal distance between financial externalities and technological externalities at the national level.