Research On The Influence Of Hunan Regional Financial Development Level On Economic Density

As an important lever indicator to measure regional economic development level and regional development coordination,economic density can reveal regional economic development law and reflect regional spatial structure,thus playing an important role in formulating and implementing global development strategy for regional economic policy.While the growth of economic density mainly depends on economic growth,the level of financial development guarantees economic growth to a certain extent.Whether the economic density in one region is affected by the level of financial development,and how does measurement indicator,which is included in the level of financial development,affect their respective economic density has a certain realistic research significance.This paper summarizes the theoretical results of how financial development affects economic growth and economic density at home and abroad,and forms a theoretical framework for analyzing how financial development affects the economic density from both theoretical and empirical perspectives.The influence of financial development to economic density is analyzed from the perspective of economy,economic growth,economic structure,urbanization and so on,and then spatial analysis of regional economic density and financial development level in Hunan province is carried out.Secondly,the financial development level is measured in a narrow sense and a broad sense.The broad-sense financial development level adopts the main component analysis method to synthesize the financial development measurement index,and the narrow-sense financial development level is characterized by the Economic Value Added of the financial industry.At the same time,two methods,the least square regression and fixed-effect model with robust standard error,are applied to the regression test in the narrow sense and the broad sense,and the result shows that the financial development level of Hunan Province has a significant positive contribution to the economic density.It can be seen that the influence of Hunan's financial development on the economic density is mainly the financial efficiency,and the special case study on the economic group of the two urban agglomerations---Chang-Zhu-Tan Urban Agglomerations and Dongting Lake Economic Group shows that the relationship between regional economy on financial development and economic density has an enhanced effect.Hunan's regional financialsystem needs to be further deepened.Finally,the author puts forward the policy and suggestion for promoting the economic density of the regional financial development in Hunan.