The Evolution Mechanism And Effect Of Financial Agglomeration

In recent years, as globalization and IT promotion, the internatio nal financemarket deve lops so fast and speeds up the capita l flows globally. Mote and morefinanc ia l institution use enterprise cooperatio n to orga nize transactio n and production,so agglo meration effect of service appears and some scho lars have focused on thefinanc ia l agglo meratio n effect. But the evo lution and effects of financ ia lagglo meratio n effects are vulnerable yet. Research of financ ia l agglo meratio n isalways focused on the analytical frameworks of general industrial groups’ conceptionor simply by a na lyzing paradigms of manufacturing a gglo meration. So it is needed torevaluate adoptio n and target of the methodolo gy. Meanwhile, the former financ ia lagglo meratio n research just touched on the surface of theoretica l research because oflack of the detailed materia l and data, let a lo ne the proved analytica l measureme ntresults. Therefore, the iss ue such as the b irth o f fina nc ial a gglo meration, themeasure ment on the c lustering ability of the agglo meration areas, the evolution offinanc ia l agglo meration and the effect on the loca l finance and industria l developme nt,have not discovered yet. Then, how to use syste matic ways by qua lity, q uantity andspace metrics to explore the financ ia l agglo meration birth and deve lopment issupple mentary and improve ment for financ ia l agglo meration res earch and also thetheoretical ground and data support for macro decision.Taking into account the econo mic geography, spatia l economics and s ystemdyna mics, this thes is investigates the features of finance, establis hes the financ ia lagglo meratio n evo lutio n mec hanis m and effect analys is fra mework on the basis of thefundamental theories of financial agglomeration and China’s realities. It could bereflected in the following seven aspects:First, on the basis of syste matically rationa lizing the research achieve ments ofboth domestic and internationa l sc holars on financ ia l agglo meratio n connotation,mecha nis m, evolution a nd effect, it defines the re leva nt concepts of financ ia lagglo meratio n and conducts research on the essence and characteristics of financ ia lagglo meratio n as well as its difference fro m other ind ustrial agglo meration byconsidering the features of the development of financial industry.Second, by comparing the measureme nt of d ifferent ind ustrial agglo meration, itestablis hes the comprehe ns ive e va luation index s yste m of financ ia l a gglo meration degree and assesses the spatial c luster degree and dyna mic change characteristics offinance fro m the perspective of financ ia l scale, market and institutio ns. The analys isshows that, currently, the fina nc ial agglo meratio n varies fro m each other in terms ofthe spatial d iversity. The financ ia l agglo meration degree diminishes fro m the east tomidd le and western China. Be ijing, Guangdong, Shanghai, Zhejiang and J iangs u areall c ities with high degree of fina nc ial a gglo meration while western cities, suc h asGuizho u, Ningxia, Q inghai and Tibet are cities of low degree of financ ia lagglomeration due to their financial backwardness.Third, according to the analys is results of dyna mic factors of fina nc ialagglo meratio n evo lutio n, the artic le sets up space pane l measureme nt model offinanc ia l cluster evolution mechanis m as well as Geographica lly Weighted Regress ion(GWM). The experiment shows that, scale economy, po licy environme nt, industria lcompetition and knowledge spillo ver ha ve exerted substantial influence on financ ia lagglo meratio n of different regions. Then, it also establis hes the Logistic Model offinanc ia l agglomeration e volutio n process and judges the overall e vo lutio n trends offinance. According to the researches, financ ia l agglo meration syste m of China is inthe rise stage, which is evidenced by the fact that, Ha ina n Province exists in the initia lstage of financ ia l agglo meration system develop ment, Beijing took the lead inentering the growth phase of financ ia l agglo meratio n evolution and Guangdong,Beijing and Fujian province will s uccessive ly step into the mature period of financ ia lagglomeration system development.Fourth, in light of the research result of fina ncia l agglo meratio n evolutionmecha nis m, it establis hes the systematic dyna mic model of financ ia l agglo merationevolution route and imitates the simulation evo lutio n model of fina nc ial evo lution. Itchecks the simulation model with the data of Guangdong province and finds that thefinanc ia l agglo meration evo lutio n syste m could accurately re flect the evo lutionprocess of financ ia l agglo meration. On this basis, it conducts ana log s imulatio n of thefinanc ia l agglo meratio n trend o f different provinces of China, whic h ind icates thatBeijing, Guangdong and Shangha i will take the lead in terms of financ ia lagglo meratio n degree in China. However, the c luster degrees of Hebei, Shaanxi andShandong reach the second rank ings of China, and cities in western China, such asQingha i, Tibet and Guangxi are in a relative ly low le vel. Furthermore, it takes theexamp le of Gua ngdong province, analyzes the impact of polic y cha nges on re giona lfinanc ia l agglo meratio n and finds that the increase in governme nt spending andimprove ment in regiona l infrastructure are cond ucive to fac ilitating regio nal financ ia l agglomeration.Fifth, based on the effect of financ ia l agglo meration on regiona l econo micgrowth， it puts forward the dyna mic pane l model and investigates the dyna micspillover effect of fina nc ial agglo meration on regiona l economic growth. The resultsdemo nstrate that the first-order lag qua ntity a nd the capita l input are effective inpromoting regio nal economic growth; however, the financ ia l agglo meration degreeand labor input exert negative inhib iting effect on reg iona l econo mic growth. Thro ughthe experime nt of exa mining the spatia l spillover e ffect of fina ncia l agglo meration onregio na l economic growth, the a uthor finds that, the no n-fixed effect, spatia l fixedeffect and time fixed effect of financ ia l agglomeration o f provinc ial leve l in bothspatia l lag model and spatia l error model ha ve obvious positive spillover bearings onregio na l econo mic growth. From the perspective of local influence of d ifferentvariab les, the financ ia l c luster o f some western regions, inc lud ing Shanxi, Mongo liaand Guizhou, bears negative spillover effect on regio nal economic growth. At last, theemp irical stud ies confirm the existe nce of thresho ld effect of financ ia l a gglo merationon regio na l econo mic growth and obtain the thresho ld va lue of4.0639by establis hingthe threshold panel regression model.Sixth, by analyzing the mechanism of financial agglomeration’s effect onregio na l industria l structure, it also investigates the spatia l connections betweenfinanc ia l agglomeration and industria l structure fro m the ange l of space. The researchshows that, the ind ustrial structure d ispla ys an obvious spatia l positive auto-correlation re lation in the spatia l d istribution. By means of integrating into thespatia l e ffect, it measures the correlation degree between fina ncia l a gglo meration andindustria l structure and manufacturing competitiveness and verifies the non-fixedeffect, spatia l fixed effect and time fixed effect of financ ia l agglo meration ofprovincia l leve l in spatia l error model ha ve obvious positive spillover bearings onregio na l industria l structure. The deve lopme nt of financ ia l agglo meration isconduc ive to the promotion o f the effective ness of manufacturing ind ustry a nd theenhance ment o f competitive ness. By establis hing the syste m of s imultaneousequations, it finds out the spatia l linka ge effects between fina nc ial a gglo meration andmanufacturing agglomeration.Seventh, according to the research results of polic y simulation o f dyna mics andthe spatia l effect ana lys is of financ ia l agglo meratio n, it proposes the rele vant polic iessuggestions and supporting measures to promote the deve lopme nt of finance byconsidering the current development status of China’s financial agglomeration and the elements that restrain the development of financial agglomeration.