Research On Impacts Of Financial Agglomeration On Manufacturing Industrial Upgrading In China

By 2019,China's total output of manufacturing industry has ranked first in the world for 9 years,and its production capacity has increased significantly.However,the dilemma of "big but not strong in the manufacturing industry also emerged.In this context,the upgrading of manufacturing become a top priority.The Financial Services Industry,which is the key factor to promote the growth of the economy,also plays an important role in the process of upgrading of manufacturing industry.The development of the manufacturing industry need the support from the financial services industry.To this end,this article focuses on the financial agglomeration in different provinces of China and examines its effect on manufacturing industry upgrading.From the perspective of theoretical research and empirical research,this paper discusses how the financial agglomeration affact manufacturing industry upgrading.First of all,this paper sorts out lots of relevant literature,providing theoretical support for subsequent quantitative and qualitative research.Secondly,this paper systematically analyzes the mechanism of the role of financial agglomeration on manufacturing industry upgrading in three aspects:financial agglomeration effect,diffusion effect and financial spillover benefit.Thirdly,in order to objectively and comprehensively reflect the level of China's manufacturing upgrading,this article abandoned the method of measuring industrial upgrading with a single indicator,and creatively designed the Regional Manufacturing Industry Upgrading Index.Then,using the panel data of 30 provinces in China from 2006 to 2016,this article empirically examined the effects of financial agglomeration,banking agglomeration,securities agglomeration and insurance agglomeration on manufacturing industry upgrading.The results show that the financial agglomeration in China can significantly promote manufacturing industry upgrading,and the role of banking agglomeration and the securities industry agglomeration are more obvious.The insurance industry agglomeration has not shown the positive effect on manufacturing industry upgrading.From the sub-sample regression results,financial agglomeration can promote manufacturing industry upgrading in the central and western regions,but it cannot promote manufacturing industry upgrading in the eastern region.In addition,the securities industry agglomeration and insurance industry agglomeration in the eastern region can effectively promote manufacturing industry upgrading,while the banking industry agglomeration in the central and western regions can significantly promote manufacturing industry upgrading.In addition,financial agglomeration has shown a certain positive effect on manufacturing industry upgrading in three different regions:except for autonomous regions,except for municipalities,and except for autonomous regions and municipalities,and there is no particularly obvious difference.From the perspective of the subdivision dimension of the manufacturing industry upgrading index,China's financial agglomeration mainly promotes manufacturing industry upgrading through three dimension:the improvement of quality and efficiency,information technology,and ECO development.Finally,this article puts forward some reasonable suggestions on how to make better use of financial agglomeration to promote manufacturing industry upgrading.