The Impact Of Financial Agglomeration In The Guangdong-Hong Kong-Marco Greater Bay Area On Economic Growth

The financial industry is the core of modern economic development and can promote economic growth in a country or region.The cooperation of the Guangdong-Hong Kong-Macao Greater Bay Area is a major initiative.The Greater Bay Area has extremely rich financial resources and its economic development is in good shape.Due to the different resource endowments in the bay area and the problems left over by history,the development of every city is not the same.It is not reasonable to study the bay area from the overall level.Therefore,this paper selects the data of 11 cities in of the bay area to conduct research to better explore heterogeneity and spatial correlation.It is of great practical significance to analyze the current financial agglomeration status and explore the relationship between financial agglomeration and economic growth.On the basis of existing research,this paper discusses the impact of financial agglomeration on economic growth.Financial agglomeration can drive the development of local and surrounding areas.Based on the summary of literature review,this paper empirically studies the current financial agglomeration in the Greater Bay Area.Firstly,the principal component weighting method is used to synthesize the annual financial and economic indicators from 2001 to 2017,which directly describes the current situation of financial aggregation and economic growth in the bay area.Secondly,Modeling and analysis were carried out by introducing 0-1 geographic weight matrix,economic weight matrix and co-movement weight matrix.Finally,the gravity model is used to measures the financial network in the Greater Bay Area.The results show that the economic level and financial development of the cities in the bay area are significantly different.By introducing the coordinating space weight matrix,the fitting effect of the spatial econometric model has been significantly improved.The overall financial scale,banking,securities and insurance have a positive impact on economic growth.The gravitational model tells that cities with strong degree of financial agglomeration have stronger connection intensity.