Research On The Impact Of Provincial Financial Agglomeration On The Level Of Economic Development In China

As the core of the modern economy,finance can promote economic development by creating purchasing power for enterprises and improving the efficiency of resource allocation.With the development of information technology,the cooperation between financial institutions and surrounding areas has gradually deepened,and through cross-regional management to conduct production transactions,the formation of the basic form of contemporary financial industry organization-financial agglomeration.Financial agglomeration is an effective way to improve the level of economic development by breaking through regional restrictions,guiding the flow of factors and allocating capital across regions,and optimizing and upgrading the industrial structure.It should be emphasized that economic development itself should cover two aspects: the scale of development and the quality of development.Therefore,this paper studies the impact of financial agglomeration on the overall level of economic development.Firstly,the concept of financial agglomeration is defined,and the mechanism of financial agglomeration affecting economic development is analyzed.Then establish comprehensive evaluation index,select the panel data of 31 provinces and cities in China from 2007 to 2016,use the entropy method to measure the comprehensive index of financial agglomeration and economic development level of each province,and conduct financial agglomeration and economic development.The degree of coupling analysis of these two systems.Finally,the spatial lag panel data model with space-time double fixed effect is used.The results show that: First,the level of financial agglomeration in different regions of China is significantly different,which is characterized by stable changes in the level of higher financial agglomeration in the eastern region and stable changes in the level of lower financial agglomeration in the western region.The central region is developing rapidly on a certain basis..The spatial and temporal distribution of economic development level is consistent with changes and financial agglomeration.The coupling degree of provincial financial agglomeration and economic development is distributed in the low-level coupling,anti-compatibility and running-in phase,and it rises with time.The coordination relationship between the two subsystems Not yet perfect but is moving in a good direction.Second,China’s financial agglomeration and economic development level have significant spatial positive correlation,spatial spillover effect is obvious,the province has spatial agglomeration phenomenon with similar financial agglomeration level and economic development level,and the spatial spillover effect gradually increases with time.3.Financial agglomeration,government support,fixed asset investment and human capital level have a significant positive impact on economic development.The actual use of foreign capital has a significant negative impact on economic development due to the defects of the financial system and the excessive concentration of foreign capital in manufacturing.influences.The spatial lag term of the economic development level of the explanatory variable has a significant positive impact on economic development because of the existence of spatial spillover effects.For every unit increase in the financial agglomeration index,the economic development level index will increase by about 2.011 units,which can verify its contribution to the level of economic development.Strengthening the formation of financial agglomeration can not only promote the economic development of the province,but also use its agglomeration benefits and spatial spillover effects to act on the real economy and,to a certain extent,drive the economic development of neighboring provinces.