Research On The Impact Of Financial Agglomeration On The Total Factor Productivity Of The Financial Industry

As the core of modern economic growth,finance is the bloodline of a well-functioning economy.China's economic and social development has entered a new normal,and the operation of the financial market has also progressed steadily,gradually shifting to the pursuit of high-quality development,and financial reform and opening up have also made some progress.With the rapid improvement of the economic development level of the eastern coastal areas,financial elements and financial resources are more concentrated in the eastern coastal areas,forming a financial center.With the steady development of financial integration,in the Yangtze River Delta,the Bohai Rim,Under the development pattern of the four major industrial agglomeration areas in the Pearl River Delta and the upper and middle reaches of the Yangtze River,financial institutions and financial resources have also shown an obvious agglomeration trend,bringing opportunities and challenges to the development of the regional financial industry.Based on a review of relevant research literature at home and abroad,this paper analyzes the theoretical mechanism of China's financial agglomeration affecting the total factor productivity of the financial industry.At the same time,the financial industry related data of 30 provinces(municipalities and autonomous regions)in mainland China were selected from 2007 to 2017,and the degree of financial industry agglomeration in China and provinces was measured by the entropy method from the perspective of value-added financial industry and financial industry practitioners Then,by constructing the Global-Malmquist-Luenberger productivity index measurement model,the total factor productivity index and its decomposition value of the financial industry in China's provinces under the consideration of the non-expected output factor of "non-performing loans" are calculated.Secondly,using the quantile regression analysis method,explore the influencing factors of financial agglomeration and government intervention,the level of urbanization,the degree of industrialization,human capital,foreign direct investment,and infrastructure investment at different quantiles of total factor productivity in the financial industry.The degree of impact on the total factor productivity of China's financial industry.Furthermore,a static panel data model was constructed to analyze the impact of financial agglomeration on the total factor productivity of the financial industry.Considering that there is a certain endogenous problem in the total factor productivity of the financial industry,the model was adjusted to a dynamic panel data model,and the total factor of the financial industry was included in the model.The lagging period variable of productivity,according to the generalized system moment estimation(SYS-GMM)method,is used to study the dynamic impact of China's financial agglomeration on the total factor productivity of the financial industry.The main conclusions are as follows(1)From 2007 to 2017,China's financial industry agglomeration and the total factor productivity of the financial industry both have obvious regional differences.China's overall financial industry agglomeration level is not high,and the distribution of financial resources is uneven.Although there is a clear financial agglomeration trend,there are large regional differences.The financial industry agglomeration trend in the eastern region is relatively obvious.The financial agglomeration levels in the central and western regions are relatively high.On the low side.Taking into account the "non-performing loan" non-expected output factor,the total factor productivity of China's financial industry showed a volatile trend from 2007 to 2017.On the whole,the average annual growth rate showed an upward trend,which was more obvious in the central region.Among them,the financial industry's technological progress index has improved,while the financial industry's technological efficiency index has remained flat and has not changed much,indicating that in the current development process of China's financial industry,the role of technological progress in the financial industry is greater than the contribution of the financial industry's technological efficiency.(2)From a nationwide perspective,financial agglomeration has significantly inhibited the total factor productivity of the financial industry.This reflects that the overall level of financial agglomeration in China at this stage is relatively low.Under the effects of the strengthening effect of the main body,the spillover effect of innovation and the effect of scale radiation,the positive role of financial industry agglomeration in the development of the financial industry has not been fully exerted.There are imbalances,and there are large differences in financial resources,factor bases and resource utilization efficiency between regions.Government intervention and infrastructure investment have a negative inhibitory effect on the total factor productivity of the financial industry,and the level of urbanization,industrialization,human capital and foreign direct investment have played a positive role in promoting it.The industrialization process has achieved certain results as a whole.Human capital and foreign direct investment have provided support for the increase in the total factor productivity of the financial industry in terms of talents and capital.However,government actions still require a certain degree of restraint to continue to deepen the "decentralization of services" reform.(3)From a regional perspective,the impact of financial agglomeration on the total factor productivity of the financial industry is different.The financial industry agglomeration has a relatively obvious inhibitory effect on the total factor productivity of the financial industry in the eastern and central regions,but has a certain promoting effect on the western region.From the perspective of other influencing factors,government intervention and infrastructure investment have a restraining effect,human capital and foreign direct investment have a positive promoting effect,and the level of urbanization and industrialization have a significant impact on the total factor productivity of the financial industry in the eastern and central and western regions.The promotion has the opposite effect.It can be seen that the regional financial development has different basic conditions,and the degree of influence of the same influencing factor will inevitably have regional differences.To improve the overall level of China's financial industry,it is necessary to give full play to its geographical advantages and maintain a dynamic and balanced adjustment of the financial development structure in the eastern and central and western regions.According to the above conclusions,in order to better utilize the advantages of regional financial agglomeration and promote the development of China's financial industry,the following policy recommendations are put forward:implement the financial industry's innovation-driven development strategy,give full play to capital advantages,and enhance financial innovation;The core of the reform is to expand the level of financial openness;strengthen the infrastructure construction of the financial industry and build a multi-level financial market system.