The Theoretical And Empirical Standy On The Relation Between Financial Agglomeration And Regional Economic Growth

Since from 20th century 70s, with the economic integration and financial globalization, international capital flows accelerated and the reorganization of international financial industry, caused financial activities and financial institutions aggregated in the financial center. Modern market economy has proved that there exists very close interaction between financial development and economic development. And China'China's regional economic development differences is depends on the regional differences in financial development in a large part. Although China has established a relatively sound financial system, but also formed a certain scale of financial concentration regions, but there are also many problems need to be solved, like the layout of financial resources and financial center construction, etc. The study on the finance agglomeration has great actual significance for the development of China regional economic and finance. Like the study on the characteristics of financial concentration in China, the impact to regional economic development, promoting regional financial healthy development and the strategies of financial reforms. And these studies have great theoretical significance to financial services industrial cluster theory research.Firstly, the paper proposed the significance and practical motives of this research according the development of China's financial status. The paper gives the concentration of research papers research ideas, main content and technical line based on the research summary. Then paper summarized the inclusion of financial geography, spatial economics and financial research of industrial economics spatial concentration. The paper analyzed the characteristics and causation of finance agglomeration from the point of view of processes and phenomena of financial concentration. The paper analyzed operational mechanism of finance agglomeration combined with the characteristics of the financial industry. Then the paper analyzed operational mechanism of the effect from finance agglomeration regional economic growth. On the basis of the theoretical analysis, papers did the econometric model analysis relation between financial agglomeration and regional economic growth. First, the paper analyzed the.spatial differences of China's finance agglomeration by calculating the Location entropy of China's finance agglomeration. The paper did the econometric analysis on the relation between financial agglomeration and regional economic growth by use China's inter-provincial cross-section date and panel data of from 2003 to 2007. The result shows that there exists long-term stable equilibrium relationship between China's financial agglomeration and regional economic growth. The result shows that the elasticity coefficient of banking is greater than the securities industry and the insurance industry agglomeration. And the elasticity coefficient shows obvious upward trend. Because of spatial geographical characteristics of China's financial concentration, the paper analyzed the spatial effect from financial agglomeration to regional economic growth by use the space econometric method. The paper proved the existence of spatial correlation by calculating the Moran'I index of China's financial concentration. The paper draws the Moran'I scatter diagram of 2003 and 2007 and obtained the Space-related model of China's province. On this basis, the tested the space spillover effects from financial agglomeration to regional economic growth through the establishment of SLM, SEM, and SDM space measurement model. Then the paper did cointegration test on the radiation effect from financial agglomeration to regional economic growth in Yangtze River Delta region which is the highest degree area of financial concentration in China. The research result shows that Shanghai's financial gather not only impact the Shanghai local economy, and its banking and securities industry also affect the economy of the whole Yangtze River Delta region. Then the paper test the mechanism of financial gather to Yangtze River Delta region economic gowth from the three channels of allocation of resources, technology spillovers, technological innovation.On the basis of theoretical analysis and empirical tests, the paper strategic vision of multi-level regional financial center Construction in China combined with situation of current international financial development trends and China's economic and financial development. The strategic vision includes strategic positioning of the eastern, central and western parts'financial concentration and how to achieve inter-regional financial cooperation.