Research On The Impact Of Administrative Division Adjustment On Urban Financial Agglomeration

The Fifth Plenum of the 19 th Central Committee proposed to comprehensively deepen reforms,build a high-level socialist market economic system,give full play to the decisive role of the market in resource allocation,and at the same time give better play to the role of the government,and promote a better integration of effective markets and effective governments during the 14 th Five-Year Plan period.Under our country's current administrative system,administrative means are an important way to allocate resources.In recent years,the adjustment of administrative divisions has become an important strategic choice for local governments to accelerate development.It helps to improve government governance,meet the space and governance needs of urban development,and accelerate the promotion of new urbanization.On the other hand,finance can provide blood for the real economy,it is the core of the modern economy.Financial agglomeration can help improve the efficiency of resource allocation and promote high-quality regional development.The impact of administrative division adjustment on financial agglomeration and the impact mechanism are worthy of in-depth study.This papper selected 281 cities above the prefecture level in China as a sample,divided them into the experimental group and the control group according to whether the administrative division adjustment was implemented.Based on the statistical data from2008 to 2018,this paper established a comprehensive evaluation index system to measure the level of financial agglomeration in each city,and adopt tendency Score matching-double difference method(PSM-DID)analyzes the effect of administrative division adjustment on my country's urban financial agglomeration.At the same time,it examines the heterogeneity of the impact mechanism and policy effects under different conditions.The study found that:(1)The adjustment of administrative divisions can generally expand the scale of urban finance,increase the density of urban finance,and promote financial agglomeration.(2)In terms of influence mechanism,the adjustment of administrative divisions mainly promotes the upgrading of industrial structure and regional market integration to improve the level of urban financial agglomeration.(3)The effect of administrative division adjustment on financial agglomeration is geographically heterogeneous.It can promote financial agglomeration in eastern cities,expand financial scale,and increase financial density;promote financial agglomeration in western cities,expand financial scale,and reduce financial density;it has no significant impact on central cities.(4)The impact of administrative division adjustment on financial agglomeration is heterogeneous in urban scale.It can significantly promote financial agglomeration in big cities and reduce the level of financial agglomeration in small cities,and its impact on medium-sized cities is not significant.(5)The overall financial agglomeration level of Chinese cities is on the rise,and the spatial distribution is uneven.Financial resources are mainly concentrated in the eastern part of China.Based on this suggestion: the central government should actively and steadily advance the adjustment of administrative divisions,consolidate the foundation for the development of the financial industry,implement differentiated financial support policies,and optimize the level of urban financial agglomeration.Local governments should speed up financial agglomeration according to local conditions,strengthen regional financial cooperation,work hard to lower administrative barriers,and strive to optimize the external environment for financial agglomeration development.