Financial Development,Capital Flow And China's Industry Space Distribution

The research on the coordinated development of regional economy has always been the focus of scholars' attention.Since the reform and opening up 40 years ago,China's regional economic development is still experiencing a transformation from unbalanced development to coordinated and balanced development.In this transformation process,as one of the cores of coordinated development of regional economy,how to guide the real industry to achieve a balanced spatial distribution has become increasingly prominent research value.However,most of the existing studies on industrial spatial distribution and industrial agglomeration neglect the role of Finance in the core allocation of modern economy.Therefore,from the perspective of financial development,this paper will focus on exploring the distribution mechanism of industrial space under regional financial development differences,and then carry out relevant countermeasures.Based on the theory of industrial spatial distribution and related research,this paper finds that the level of regional financial development significantly affects the external financing cost and location decision of enterprises,and then decides the capital flow and the spatial location choice of industries.Therefore,the difference of regional financial development is bound to become an important factor affecting the spatial distribution pattern of regional industries.Under this research idea,this paper makes a detailed analysis of the present situation of regional financial development level,the difference of capital factor distribution and the change of industrial spatial distribution in China's provinces,and finds that the financial development level of provinces and regions in China shows the characteristics of decreasing in turn in the east,the West and the west;furthermore,the distribution of capital factor and industrial spatial distribution are highly correlated,showing the characteristics of decreasing in turn from the east to the west.The trend of agglomeration of the eastern coastal areas in the central region.The above results show that there is a strong correlation between the level of financial development and the share of capital elements and industrial shares in all regions of China,which also provides a solid realistic background for further exploring the relationship between the above three.Furthermore,this paper introduces the financial sector into the framework of the new economic geography free capital model.On the basis of the geographical space of regional finance,this paper comprehensively investigates the level of regional financial development through the factors of financial market scale,diversity of financial structure,efficiency of financial contract execution and financial information freedom.Through the construction of relevant theoretical models,the core of the above-mentioned regional financial development is discussed.The mechanism of capital flow under the inter-regional differences of constituent elements and the spatial location selection of real industries are theoretically elaborated,and the theoretical results are empirically tested by using the provincial empirical data of China from 2005 to 2014.The results show that the larger the financial market scale,the lower the financing cost,the higher the capital return,the more conducive to industrial agglomeration in the region;at the same time,its marginal effect is further enhanced with the regional financial structure diversity and the positive enlargement of the financial contract execution efficiency gap,and vice versa,with the regional financial structure diversity and the financial contract execution efficiency gap.The negative expansion is further weakened.In addition,from the perspective of financial information freedom with the increase of interregional financial information freedom,the marginal effect of financial market size on regional industrial agglomeration is gradually weakening.The theoretical explanation of the above conclusion is that the positive enlargement of interregional financial structure diversity and financial contract execution efficiency can strengthen the Matthew effect caused by the scale of financial markets in developed regions;on the contrary,the negative enlargement of interregional financial structure diversity and financial contract execution efficiency weakens the Matthew effect caused by the scale of financial markets in developed regions.Finally,the improvement of interregional financial information freedom can promote interregional financial cooperation,strengthen the radiation of financial services,enhance the spillover effect of financial knowledge and information,thus promoting the common development of regional finance,and to a certain extent,alleviate the financial constraints faced by underdeveloped regions.The innovative point of this paper is that under the influence of the law of diminishing marginal return of factors,with the free flow of factors of production,the growth between different regions will show a convergent trend,and the markct price mechanism can achieve the equilibrium of growth level and income among regions,thus promoting the balanced development of regions.However,this paper holds that due to the difference of financial development level among regions,the high level of financial development in developed regions will have a cumulative effect on their economic development,and even offset the role of the law of diminishing marginal return on capital to a certain extent.Therefore,the trend of agglomeration of capital elements among regions will not be reversed.Therefore,on the basis of considering the development of regional finance,it will be more realistic to analyze the spatial distribution of China's industry by using the new economic geography theory for reference.Last,the policy enlightenment of this paper is:to promote the coordinated development of regional economy by means of financial force,we should promote the diversification of financial market while pursuing the expansion of financial market scale,and strive to improve the financial system environment;in addition,we should strengthen the disclosure of financial information,improve the overall level of financial informatization in China,so that financial services in developed areas can effectively cover underdeveloped areas while underdeveloped areas are underdeveloped.Developed areas can also be effectively used;finally,the implementation of appropriate financial policies in less developed areas is also reasonable to promote the coordinated development of industry and regional economy in China.