Spatial Econometric Analysis Of The Impact Of Financial Agglomeration On Regional Economic Growth

Since the reform and opening up,the proportion of service industry in China’s industrial structure has been increasing.As the core industry of modern service industry,financial industry has gradually occupied a pivotal position in the territory of the national economy and become a powerful driving force to promote social and economic development.The financial industry is a combination of liquidity and profit,and it will show the phenomenon of rapid concentration to advantageous regions in geographical space,forming the financial agglomeration center,and the diffusion scale effect and spillover effect produced by financial agglomeration can effectively promote regional economic growth.Therefore,all provinces and cities throughout the country are vigorously promoting the construction of regional financial centers to drive regional economic development.Economic level and the level of financial industry developed relatively ahead of the national average of Zhejiang formed two regional financial agglomeration center in Hangzhou and Ningbo,but the cities in the province’s economic development level and financial agglomeration degree of differentiation is obvious,highlighted problems such as uneven distribution of resources,economic and financial development in the new economic conditions of Zhejiang province faces some difficulties.In this context,from the perspective of geographical space,this thesis studies the impact of financial industry agglomeration in Zhejiang province on regional economic growth,and explores the spatial spillover effect of financial agglomeration,which has important practical significance for improving the utilization rate of financial resources in Zhejiang Province and balancing the economic and financial development of various cities.Firstly,this thesis combs the relevant literatures at home and abroad from the causes of financial agglomeration and the influence of financial agglomeration on economic growth.Then,this thesis elaborated the relevant theories of financial agglomeration and spatial econometrics,and selected output density entropy to measure the degree of financial agglomeration,laying a theoretical foundation for the empirical analysis below.Next,it analyzes the economic and financial development of Zhejiang Province as a whole,the cities in Zhejiang Province and the three metropolitan areas in Zhejiang Province,and discusses the existing problems in the economic and financial development of Zhejiang Province,paving the way for the analysis of the spillover effect of regional financial agglomeration in the following part.Finally,panel data of 11 cities in Zhejiang Province from 2005 to 2020 are selected as research samples.Regional economic growth level is taken as the explained variable,financial agglomeration level is taken as the core explanatory variable,and four control variables are introduced to construct the spatial Dubin model.Based on the improved spatial weight matrix and economic distance spatial weight matrix,regression estimation and spatial effect decomposition are carried out to explore the impact of regional financial agglomeration on economic growth.In this thesis,the research results show that:(1)there are obvious differences in the level of economic development and financial development among cities in Zhejiang province,and the development gradient is obvious.The level of economic and financial development in Hangzhou and Ningbo is obviously higher than that in other cities,while the level of economic and financial development in Lishui and Quzhou is relatively backward.(2)For Zhejiang province as a whole,Ningbo metropolitan area and Southern Zhejiang metropolitan area,financial agglomeration can promote the regional economic growth,but at the same time produces a negative spatial spillover effect,is not conducive to the development of surrounding areas;(3)In Hangzhou metropolitan area,financial agglomeration can not only promote the local economic growth,but also produce positive spillover effect to promote the economic growth of surrounding areas;(4)Opening to the outside world,fixed asset investment and human capital have positive spatial spillover effects on regional economic growth in Zhejiang province as a whole and in the three metropolitan areas within Zhejiang Province,but the spillover effects of human capital are not significant in the four spatial ranges,and excessive government intervention is not conducive to economic growth.This thesis uses the spatial econometric model to empirical analysis,and the spatial weight matrix is the key point of the spatial econometric model,which has a significant impact on the model fitting effect and estimation results.Therefore,the spatial weight matrix based on AMOEBA process improvement is used in this thesis.Compared with the traditional singlefactor spatial weight matrix,the setting of this weight matrix is more objective and reasonable,and two factors are considered comprehensively,resulting in better fitting effect of the model and the estimated value is closer to the real situation.At the end of the thesis,aiming at some problems and difficulties of economic and financial development in Zhejiang Province,combined with the research conclusions of this thesis,relevant policy suggestions are put forward from the aspects of achieving balanced development,improving social financing structure,promoting financial innovation,preventing financial risks,and building talent team.