The Impact Of Financial Deepening On China’s Electronic And Mechanical Manufacturing Agglomeration

Since the development of new economic geography, industry gathering has beena topic of concern academia. With its own advantages, enhancing regionalcompetitiveness and a key factor in the formation of regional differentiation. InChina’s eastern coast, the rapid development of electronic and mechanicalmanufacturing is the early start of one of the high-tech industry. Also, it is otherindustries into the production, research and development foundation. However, theformation of industrial agglomeration by means of certain external forces, especiallyin the production of electronic and mechanical manufacturing has special needs forcapital and financial structure. Varying degrees of regional financial development alsoaffect the location choice. Different financial structure and financing of thejurisdiction in attracting enterprises the respective strengths enter. Study electronicmachinery manufacturing industry in the agglomeration process of financialdeepening in the distribution of industrial space is related with cluster developmentand path selection.Previous studies, largely affirmed the role of financial deepening in financialdevelopment, gathering funds to support various types of high-tech industry, but thelack of electronic machinery manufacturing industry agglomeration for financialdeepening. The departure from the reality of industrial agglomeration and financialdeepening as the main object, to explore the mechanism of the impact of the two, andthe main conclusions drawn on the basis of the empirical analysis.I. Investigate industrial agglomeration and financial deepening’s literatureand theory.The basic theory of industrial agglomeration by the following aspects: industrylocation theory, external economic theory, the theory of competitive advantage, new economic geography theory, as well as new industrial districts theory; financialdeepening of the main theories include: critique of neoclassical monetary theory,financial development theory, the traditional theory of financial deepening, financialdeepening theory of the new development. Not only differences of the two cancombine.II. Impact of Financial Deepening on China’s Electronic and mechanicalmanufacturing agglomeration affect mechanism.Build a financial deepening electronic mechanical gathering mechanism, tryingto one-way and two-way analysis of financial deepening impact of electronic andmechanical manufacturing agglomeration way. The formation mechanism of financialdeepening through capital investment effect, guiding mechanism and marketexpansion capital mechanism and effects of employment and economic growtheffects for the gathering of the representatives of high-tech electronic and mechanicalmanufacturing industry. Instead, the industry gathering by factors such as financing,human capital and technological innovation to enhance the regional financialdeepening. As a result, the financial deepening between cycles accumulated onindustrial clustering mechanism.III. Development of China’s financial deepening and level.With the acceleration of the process of reform and opening up, China’s financialdeepening reform has achieved initial results, and plays an increasingly important rolein the economic operation. The same time, due to the policy and the transformation ofthe regional allocation of resources, our financial resources spatial distribution patternchanges, provinces and autonomous regions in the degree of financial deepening isalso inconsistent, followed by the formation of regional differences and otherindustries affected by the uneven distribution. This section includes the deepening ofChina’s financial development process, and overall condition as well as the regionalfinancial deepening, later empirical analysis provides reference data.IV. Description of the electronic machinery manufacturing industry agglom-eration and financial deepening’s relationship.Since the reform and opening up, China’s industrial space unevenly distributed,especially high-tech industries as the main technical support. However, over the years, the academic industrial agglomeration is based on the study of the distribution of thetraditional industries, which to some extent affected the judgment of the Chineseindustrial transfer and spatial layout. The electronic and telecommunicationsequipment and computer and office equipment, including electronic, mechanicalmanufacturing industry is a typical representative of the Chinese high-tech industryoutput value and sales revenue are among the forefront of the technology-basedenterprises. This section will be the status quo of China’s electronic and mechanicalmanufacturing, to discuss the gathering trends and distribution, economic effectsassociated with financial deepening.V. The empirical research of financial deepening impacts China’s electronicand mechanical manufacturing agglomeration.Many factors affecting industrial agglomeration, on behalf of the high-techelectronic and mechanical manufacturing industry, in particular the impact ofagglomeration factors, only take the descriptive analysis can not be fully confirmedthe relationship of financial deepening and agglomeration; Even if all financial ratiosover the financial by similar movements in agency distribution and financial assetsand agglomeration, nor the exact financial deepening is one of the influencing factorsin electronic machinery manufacturing industry agglomeration. Based on existingresearch and theory, summed up the impact of various types of industrialagglomeration factors; financial deepening and as one of the many impact variablesregression model by empirical test.VI. Problems and policy recommendations.The theory and practice of industrial agglomeration prove gathering to improvethe production efficiency of the enterprises in the region, and promote the orderlycompetition between the enterprises and the development of relevant industries,agglomeration economies effect led to the growth of the regional economy. EmpiricalAnalysis of the results showed that the positive correlation between theelectro-mechanical system manufacturing and financial deepening significantly.However, representatives of high-tech electronic and mechanical manufacturingindustry as a new impetus to drive economic development, given the characteristicsof the industry, of the requirements of the financial markets, financial institutions and financial structure, there are some problems. Promote financial deepening problemsin the electronic machinery manufacturing industry agglomeration combing, from theperspective of industrial agglomeration, the deepening of regional economicdevelopment perspective and financial point of view to put forward countermeasuresand suggestions to improve the relationship between the two, to promote industrialagglomeration.ⅰ. Use of financial deepening results strengthen the role of the influencingfactors of electronic machinery manufacturing industry agglomerationThe financial deepening role in promoting industrial clustering, the key is toreflect the impact of the gathering of the various elements in the body. Electronic andmechanical manufacturing, human capital is relying on scientific and technologicalinnovation, technological innovation is the key to corporate survival. Make full use offinancial deepening, the results of the promotion of human capital, knowledgespillovers play is conducive to enhancing the vitality of industrial agglomeration, andfurther improve the level of development of the financial industry, forming a virtuouscircle of sustainable development.ⅱ. Encourage private financial development, improve the construction offinancial marketsEncourage private financial development. From the gathering of electronic andmechanical manufacturing enterprise view of the nature and size of the majority ofprivate small and medium enterprises, at the same time make a contribution to theeconomic growth for the industrial agglomeration area, has been financing problems.Enterprises can not receive financial support through state-owned financialinstitutions, private financial savings into investment, to achieve the effect offinancial deepening investment to meet the financing needs of the private economy.At the same time, it is also timely to speed up the construction of the domesticfinancial market, optimizing financial policy.ⅲ. Reduce regional financial deepening gap, promoting coordinated regionaldevelopmentAdjust the distribution of financial resources is the key to financial deepening,and enhance the level of financial deepening of the central and western regions and guide the transfer of electronic and mechanical manufacturing, attract enterprises toenter the important factors, combined with industrial clustering can promote newgrowth pole generated in its promote the overall economic development of the centraland western regions, the role of radiation surrounding areas to form an interlockingchain indispensable.