Spatial Effects Of Financial Agglomeration On Regional Economic Growth

With the further opening up of China’s financial sector,the inflow of external financial resources has led to the continuous growth of the scale and strength of the financial industry,and the financial agglomeration effect has become more pronounced.Among them,the Chengdu-Chongqing Twin-City Economic Circle is one of the most dynamic and potential economic growth poles in western China,and its economic size and financial strength have continued to rise in recent years.However,due to reasons such as administrative system division,market exchanges within the region are hindered,and financial asset resources are concentrated in the core region of Chengdu and Chongqing,forming two major western financial center cities represented by Chengdu and Chongqing.In a more general sense,underdeveloped regions face the challenge of how to use financial means to promote economic development towards higher quality.Therefore,exploring the characteristics of financial agglomeration and its spatial effects on regional economic growth by empowering the twin-circle construction through financial agglomeration has become a worthwhile topic to investigate.This article takes a more "micro" perspective and uses data from 36 cities in the Chengdu-Chongqing Twin-City Economic Circle in the period of 2002-2020 as the research object to explore in-depth the impact of financial agglomeration on regional economic growth in the Chengdu-Chongqing Economic Circle.Firstly,based on the theoretical framework of new economic geography,the mechanism of the impact of financial agglomeration on economic growth is analyzed in-depth.At the same time,mathematical and statistical analysis and principal component analysis are used to comprehensively analyze the current situation and trends of economic and financial development in the Chengdu-Chongqing Twin-City Economic Circle.Secondly,in the empirical analysis,a comprehensive index system of financial agglomeration is constructed,taking into account the characteristics of financial development in the Chengdu-Chongqing region.Through the construction of a spatial econometric model,the spatial effects of financial agglomeration at the overall level and its main factors on the economic growth of the Chengdu-Chongqing Twin-City Economic Circle are empirically tested.The research results indicate that:(1)Currently,there is extreme imbalance in the development of finance and economy among cities within the Chengdu-Chongqing twin-city circle.The financial agglomeration exhibits a significant "Matthew effect",and there is a relatively obvious spatial correlation between neighboring regions.(2)There exists an inverted "U"-shaped relationship between financial agglomeration and economic growth in the Chengdu-Chongqing region.Financial agglomeration initially promotes economic growth,but as it intensifies,its impact on economic growth gradually weakens.(3)By studying the regional heterogeneity of the impact of financial agglomeration on economic growth,it is found that geographic location,physical mechanisms,and national policies can moderate the effect of financial agglomeration on economic growth.The suitable agglomeration areas also differ among regions,and economic strength is the key factor affecting the impact of financial agglomeration on economic growth in a given area.(4)The main factors of financial agglomeration exhibit heterogeneous characteristics,and the scale of financial resources,the insurance industry,and the securities industry all have significant contributions to economic growth,while excessive concentration of the banking industry leads to a gradual weakening of its impact on the economy.In conclusion,the article proposes relevant suggestions for the development of financial agglomeration in the Chengdu-Chongqing region and the construction of the "twin-circle".