Research On The Impact Of Financial Agglomeration On The Quality Of Economic Growth

Since the reform and opening up,China's economic development has created a miracle of sustained high growth,becoming the world's second largest economy.However,there are still some difficulties in China's economic development at this stage.A large number of high-pollution,lowoutput and low-efficiency enterprises still exist.If you want to take the "middle income trap" and maintain the economic growth rate,you must complete from quantitative economic growth to Quality improvement.Finance industry plays an important role in economic growth and the spatial concentration is the development trend of this industry.In this context,the impact that financial agglomeration put on the quality of economic growth is worthy to study.This paper will explore this theme by introducing the financial geography theory,economic growth spillover model and spatial econometrics.In the first part,this paper reviews relative theories,then it analyzes the cause of financial agglomeration and the essence of economic growth quality.Based on result,it also researches how the financial agglomeration influences the quality of economic growth.After illustrating The Polarization Effect as well as The Trickle Effect of this agglomeration,it also gives reasonable research hypotheses.In order to evaluate the quality of economic growth and financial agglomeration,this paper constructs comprehensive indicators respectively.The indicator for financial agglomeration includes financial scale and financial efficiency,and the indicator for economic growth quality is based on Five Development Concepts which are known as innovative development,coordinated development,green development as well as shared development.It measures the level of financial agglomeration and the quality of economic growth among China's 30 provinces(cities,autonomous prefectures;excluding Hong Kong,Macao,and Tibet)by principal component analysis method.Finally,this paper investigates the spatial spillover effect of financial agglomeration on the quality of economic growth based on spatial autoregressive model,and proposes political recommendations according to the research result.The research shows(1)China's financial agglomeration levels are significantly different and the eastern region has higher level while the faster increasing rate,however,the central and western regions has opposite trend.Shanghai,Beijing and Guangdong have the highest degree of financial agglomeration in China.(2)The regions also obviously differ in the quality of economic growth.The eastern region has the highest quality of economic growth while the central and western regions is similar lower.The innovation development index and the coordinated development index in different regions gap greatly,whereas the green development index and the sharing index gap small,and the degree of difference for the open index is continuously decreasing year by year.Beijing,Shanghai,and Guangdong have the highest level of quality of economic growth in China.(3)The financial agglomeration of China has a strong spatial correlation with the quality of economic growth.Therefore,the geography is a considerable factor when studying this topic.(4)Financial agglomeration has a positive impact on promoting innovative development,coordinated development,green development and shared development,but it has a negative impact on open development.(5)Financial agglomeration can significantly improve the quality of economic growth,and it shows a significantly negative space spillover effect.Moreover,financial agglomeration can improve the quality of economic growth by expanding the financial scale and upgrading the industrial structure.Lastly,Financial agglomeration has a promoting effect on the quality of domestic economic growth and has a restrained effect on surrounding areas.Based on these conclusions,this paper provides political recommendations as following:(1)The government should play the guiding role and emphasize the importance of the quality of economic growth.Different departments need cooperate to promote the quality of domestic economic growth.Besides,the government should focus on the gathering of financial resources,regulating financial institutions,legislating financial regulations and strengthen the guidance of investment in the western region.(2)The government should continue reforming the financial markets,making the most use of the active marketing role,reducing transaction costs of financial resources and information.It can rely on the market to promote financial agglomeration.(3)The government need enlarge the economic scale to enhance the improvement that financial agglomeration put on the quality of economic growth in surrounding areas;upgrade the industrial structure to promote the quality of domestic economic growth;strengthen financial talents training and specialization.