Empirical Research On The Impact Of Financial Agglomeration On Total Factor Productivity In Manufacturing Industry Based On Spatial Econometrics

Manufacturing industry,as the main body of the national economy,is the foundation of building the country,revitalizing the country's weapons and strengthening its national strength.From the middle of the eighteenth century till now,in the process of the development of industrial civilization,the prosperity and decline experienced by the major powers in the world and the historical facts of the struggle of our Chinese nation have been proving that if a country or a nation wants to prosper and prosper,it must have strong manufacturing industry as its support.In order to enhance our comprehensive strength,safeguard our national security and build our country into one of the world's powerful countries,we must have an internationally competitive manufacturing industry.In the general report of the Nineteenth National C ongress,"Improving Total Factor Productivity" was first put forward in the Party Congress and attracted wide attention.Our country has begun to pay more attention to high-quality economic growth,rather than just putting forward economic growth goals as before.Total Factor Productivity(TFP)not only considers economic growth,but also pays more attention to the quality and efficiency of economic development so as to make the economy more equitable and sustainable,which is directly related to the construction of modern economic system.Therefore,in order to enhance the strength of China's manufacturing industry and better promote the transformation and upgrading of manufacturing industry,it is necessary to improve the total factor productivity of manufacturing industry,so as to make manufacturing industry to high quality,high efficiency and sustainable development.Finance is the blood of modern economy.The development of finance is directly related to the development of modern economy.Manufacturing industry,as the main body of national economy,will play a decisive role in the total factor productivity of manufacturing industry.At present,the rapid flow of financial resources between different regions,financial-related transactions and financial institutions are gradually showing a centralized development to a particular region.Financial agglomeration can not only optimize the cross-regional allocation of financial resources,improve the overall operational efficiency of Finance and reduce transaction costs,but also expand the effect of the basic functions of finance,forming the scale effect,network effect and diffusion effect,which have a significant impact on the development of manufacturing industry in and around the region.Then financial agglomeration will affect the growth of total factor productivity of manufacturing industry in all aspects.Based on the existing literature,this paper analyses the mechanism of financial agglomeration on the total factor productivity of manufacturing industry.The location entropy method is used to measure the degree of financial agglomeration in each city.The global-Malmquist productivity index method is used to measure the total factor productivity change of manufacturing industry in 283 cities of China from 2005 to 2016.The spatial econometric model is used to empirically study the relationship and spatial effect of financial agglomeration on total factor productivity of manufacturing industry and technological progress,efficiency improvement of the decomposition part.The empirical results show that both financial agglomeration and total factor productivity of manufacturing industry are significant.There is a significant positive spatial correlation.Financial agglomeration has a significant role in promoting the total factor productivity of manufacturing industry.There is a certain spatial spillover effect of financial agglomeration in surrounding cities on the total factor productivity of manufacturing industry in this city.In addition,through the dual promotion of technological progress and efficiency improvement of manufacturing industry in cities,the total factor productivity of manufacturing industry can be promoted Inter-city mainly promotes the growth of total factor productivity of manufacturing industry by improving the efficiency of manufacturing industry.Finally,based on the results of the study,this paper puts forward relevant policy recommendations to make financial agglomeration better promote the development of China's manufacturing industry and further promote the growth of total factor productivity of manufacturing industry.