Research On The Relationship Between Financial Agglomeration And Rationalization Of Industrial Structure In Shanghai

With the rapid development of finance of china,the role of finance in the entire economic system has become more and more important.Due to the high liquidity of financial capital,financial centers and financial activities are increasingly concentrated in the financial center cities,and their financial distribution has a major impact on the macroeconomic situation and the micro-enterprise business.Finance allocation is playing an important role in advancing the industrial structure.Shanghai is one of the most developed cities for financial resources and this paper collects relevant data of shanghai from 2000 to 2017 to study the relationship between financial allocation and industrial structure from a theoretical and empirical perspective.The impact of industry consolidation on the optimization of industrial structure analyzed the impact of financial industry consolidation on the upgrading of industrial structure.This article reviews the domestic and foreign literature on financial agglomeration and industrial structure upgrading.We learned how financial agglomeration influences the upgrading of industrial structure and excavates the impact mechanism via the papers.This has laid a solid theoretical foundation for the early research of the article.In terms of empirical research,the qualitative description of Shanghai's financial industry agglomeration and its distribution characteristics were first described.Then the locationentropy was used to quantify the level of Shanghai's financial industry's agglomeration.Finally,a VAR model was established to pass the ADF test,Granger causality test,and impulse response analysis.Regression analysis is in-depth analysis of the impact of financial agglomeration in Shanghai on the upgrading of industrial structure.The empirical results show that Shanghai's financial industry agglomeration and industrial structure upgrading have a stable development trend from the perspective of long-term development.Financial industry agglomeration has greatly promoted the upgrading of the industrial structure.However,the influence of banking,securities,and insurance industry agglomeration on the upgrading of Shanghai's industrial structure is not the same from the perspective of the specific financial industry and there are major differences.In the financial industry of Shanghai,the banking industry plays a major role in upgrading the industrial structure.In the earlier period,the securities industry and the insurance industry had a slight inhibitory effect on the upgrading of the industrial structure.However,with the passage of time,it gradually showed cohesion and promoted the improvement of the industrial structure.In a word,in the Shanghai financial market,the credit market in the banking industry has the most significant impact on promoting the upgrading of industrial structure.The securities market and the insurance industry have little effect.Finally,based on the theoretical knowledge and empirical analysis of the article,some policy suggestions are proposed for the upgrading of Shanghai's industrial structure: to further increase the level of Shanghai's financial industry agglomeration,improve the efficiency of financial intermediation and reasonably control its risks,expand financial financing channels,and optimize the financial ecological environment.We will improve the order of financial agglomeration,adjust the layout of financial space,and promote balanced regional development.