Analysis And Comparison Of The Motivations Of Financial Agglomeration In Chinese City

As the core of the modern economy,the financial industry undertakes the important mission of promoting regional development and economic prosperity.This paper analyzes the motivations of financial agglomeration in Chinese cities,analyzes the motivations of financial agglomeration and compares the trends of various motivations under different degrees of financial agglomeration.According to the theories of industrial economics,financial geography,location selection,etc.,the internal factors that promote the development of the financial industry are the economies of scale of the financial industry,and the external factors that promote the development of the financial industry are factor supply,market demand,and urban environment,including information circulation,Human capital,regional innovation,the economy's need for financial markets,the city's economic level,and infrastructure.This paper comprehensively considers the internal and external factors that affect the financial agglomeration of Chinese cities,using data from 31 cities in China from 2011 to 2017 to conduct research,focusing on the changes in various drivers under different degrees of financial agglomeration,referring to the non-additivity proposed by Powell(2016)The fixed-effect panel quantile model performs dynamic panel quantile regression to achieve the purpose of analysis and comparison of financial agglomeration drivers.This article first reviews the research progress of domestic and foreign scholars on financial agglomeration,analyzes and summarizes the motivations of financial agglomeration;second,after examining various measurement methods of financial agglomeration,the principle component analysis method is used to construct and measure the level of urban financial agglomeration The comprehensive index system of China measures and analyzes the level of financial agglomeration of cities and regions in China;again,using the principal component analysis method to measure the factor supply,market demand and urban environment of each city,adding government intervention as a control variable and including the degree of financial agglomeration Lag item to measure the scale of the realized financial industry,perform fixed effect regression,systematic GMM regression,and dynamic panel quantile regression,and then compare and analyze 31 cities based on quantiles,and draw the General model and conduct robustness test;finally,draw conclusions and make recommendations.The main conclusions of this paper are as follows:(1)The financial development of most cities is slow,at a low level,the level of financial industry development varies greatly between regions,and the positioning of urban financial centers is unclear;(2)Overall,the realized Financial scale,factor supply,market demand,and urban environment all have significant positive effects on urban financial agglomeration;(3)under different levels of financial agglomeration,the impact of various factors is different.The biggest driving force for the development of the financial industry comes from within the industry.The benefits brought by the economies of scale of finance,etc.are continuous.The financial gatherings that have been realized inthe past have an impact on the future,and the higher the degree of financial agglomeration,the greater this internal driving force.For medium and low-level financial agglomeration cities such as Dalian and Fuzhou,it is mainly the supply of factors and the urban environment to promote financial agglomeration;for highlevel financial agglomeration cities such as Beijing,Shanghai and Shenzhen,the market demand drives financial agglomeration,reflecting a "wheeled" mode".