Theoretical And Empirical Analysis On The Impact Of Spatial Linkage Of Financial Development On Capital Allocation Efficiency

At present,the major and urgent task of our country's economic construction is to realize the transformation of economy from high-speed growth to high-quality development.Improving the efficiency of capital allocation is an important way to realize the transformation of economic development from quantity dependence to quality improvement.Finance plays an important role in economic development.Its basic function is to realize the optimal allocation of capital.As a phenomenon in the process of financial development,financial agglomeration will enhance the function of financial optimization of capital allocation.At the same time,financial agglomeration has obvious economic effects after its formation,including not only the growth effect on the region,but also the diffusion and radiation effect on the surrounding areas.Therefore,focusing on financial agglomeration and its impact on capital allocation efficiency is of great significance to the coordinated development of regional finance and the transformation of economic development mode in China.This paper studies the impact of financial agglomeration on capital allocation efficiency,including theoretical analysis,current situation analysis,empirical analysis and policy recommendations.In the theoretical analysis part,based on reviewing the relevant theories,and from the two perspectives of the function of financial agglomeration and the effect of financial agglomeration,the impact of financial agglomeration on capital allocation efficiency can be divided into financial function effect,financial agglomeration effect and financial diffusion effect.In view of these three effects,financial agglomeration affects capital allocation efficiency through three specific paths: financial scale,financial structure and financial efficiency.In the part of current situation analysis,we mainly use location entropy method and Wurgler model to measure the efficiency of financial agglomeration and capital allocation quantitatively.According to the results of calculation,we analyze the current situation of financial agglomeration and capital allocation efficiency in various provinces and regions in China.The empirical analysis corresponds to the theoretical analysis.Using the data of 30 inland provinces(excluding Tibet)from 2002 to 2016,this paper constructs a spatial econometric model to test the impact of financial agglomeration on capital allocation efficiency and its impact path.The main conclusions of this paper are as follows: Firstly,China's financial resources are mainly concentrated in the eastern region,and there is an obvious phenomenon of financial agglomeration.Secondly,there is a big gap in the efficiency of capital allocation among provinces in China.The eastern region has the best capital allocation,followed by the central region,which is consistent with the development of regional economy in China.Thirdly,financial agglomeration has significantly improved the efficiency of capital allocation,not only to improve the region,but also to play a role of diffusion to promote the efficiency of capital allocation in surrounding areas.Further subdividing the financial industry into banking,securities and insurance industries,we find that the agglomeration of securities industry has the greatest impact on the efficiency of capital allocation.Fourthly,financial agglomeration significantly improves the efficiency of capital allocation in the region and its surrounding areas by expanding the financial scale and optimizing the financial structure,and promotes the efficiency of capital allocation in the surrounding areas more than in the region.Financial agglomeration mainly improves the efficiency of capital allocation in the region through the improvement of financial efficiency,but it has no obvious effect on the efficiency of capital allocation in the surrounding areas.Considering the role of the three paths,it is found that the optimization of financial structure contributes most to the improvement of capital allocation efficiency of financial agglomeration.Finally,combined with theoretical and empirical analysis,the paper puts forward countermeasures and suggestions to improve the efficiency of capital allocation in China from five aspects,such as building multi-level financial centers and optimizing financial structure.