A Study On The Spatial Spillover Effect Of Credit Input On High-Quality Economic Development

In recent years,China’s economy has shifted from a high-speed growth stage to a high-quality development stage,showing a series of characteristics such as stable economic growth,balanced regional development,and green ecological development.How financial institutions can play their financial support function,provide innovative and efficient financial services for the development of the real economy,and promote high-quality economic development has become an important part of the financial supply-side reform.At the end of 2021,the total assets of China’s banking institutions were 344.76 trillion yuan,accounting for 90% of the total assets of financial institutions.The new credit will be nearly 20 trillion yuan in 2021 and an increase of 315 billion yuan year-on-year.As the main component of social monetary aggregate,financial credit plays an important role in the financial supply-side reform.Then,how does financial credit affect high-quality development through the transmission path,and what kind of spatial spillover effect is produced on adjacent areas in the process of impact,these questions need to be answered urgently.Based on the aforementioned,this paper seeks to address practical problems and contribute theoretical enhancements.The paper analyzes how capital allocation efficiency,which is achieved through credit investment,can advance high-quality economic development.Furthermore,by constructing mathematical models,theoretical analysis and empirical tests,the research hopes to explore the mechanisms behind the influence of credit investment on economic developments.The spatial measurement model test is also employed to contribute new research content.The main findings of this paper are summarized as follows.First,outlines the transmit channel of how credit investment affects the high-quality economic development by increasing the capital allocation efficiency.By using the Marshall Local Equilibrium Principle and Marx’s Labor Theory of Value,this paper analyzes how credit capital flows in an enterprise under the influence of interest rate price when all other factors such as manpower remain unchanged.This in turn helps to boost the allocation efficiency of enterprise capital.Next,on the foundation of credit rationing theory,the game theory analysis was used to construct a game decision model,which is used to closely examine the process of how credit capital flows between different enterprises.The model is also used to study the strategies and payoff matrix of all the stakeholders.The findings are as follows: credit capital will be directed by the enterprises’ strategies and credit policies as it flows between different enterprises.This will enhance the capital allocation efficiency between enterprises.There will be an analysis of the impact of capital allocation efficiency on high-quality economic development.Lastly,the spatial spillover effect of credit input on high-quality development is analyzed by using the core-edge model of spatial economics.By employing model derivatives and mechanism analysis,this paper concludes that capital allocation efficiency is the main effect that allows credit investment to propel high-quality economic developments and there will be a spatial spillover effect on adjacent areas in this conduction process.Second,the regional differences and space evolution of credit investment is analyzed from four dimensions: credit policy,credit intensity,credit agglomeration and credit efficiency.The discrepancy of credit investment between the eastern,central and western regions is closely examined from perspectives including the degree of credit support,credit investment,the four big bank concentration ratio and financial intermediary efficiency.The results show that after the financial market reforms,the government credit policy documents reflect more support for industrial policy and regional coordinated development.However,when comparing the eastern to central and western regions,the credit investment gap is increasingly apparent.Credit capital tends to flow to the eastern region,where the economic development level is higher and has more investment opportunities.Furthermore,as the eastern region becomes increasingly competitive,the quality of financial services persists to improve,and its financing and investment levels continue to surpass the central and western regions.Therefore,the credit efficiency level is unbalanced between the eastern,and western and central regions.As the gap widens,it reaches the state of polarization.Third,this study also verifies the direct effect and spatial spillover effect of credit investment,which boosts high-quality economic development through capital allocation efficiency.It is found that the credit investment not only directly affects the high-quality economic development of the region through the capital allocation efficiency,but also directly affects the interaction between regions during the process of efficient capital allocation.This inter-region interaction results in an indirect spatial spillover effect,which further impacts the high-quality development of the local region.This paper provides detailed analysis and grounded evidence regarding the direct effect and indirect spatial spillover effect.The findings show that the direct effect is evident in the eastern regions,while the indirect spatial spillover effect displays a masking effect.In the central regions,both direct and indirect impacts are not significant,whereas,in the western regions,direct and indirect impacts are both significant.In conclusion,based on relevant theoretical analysis,this paper examined how capital allocation efficiency played as a transmit channel for credit investment to enhance high-quality economic development.This study also uses the spatial model for empirical tests.It provides theoretical support for financial credit institutions to find the right strategy and provide customized financial policies.Furthermore,it enriches the research on the relationship between financial development and economic growth,and provides empirical evidence for the overall regional or local economic regions to formulate effective credit policies or improve the economic efficiency of capital allocation.