The Development Of Finance Agglomeration In China And Its Influence On Economic Growth

With the development of economic globalization and information technology-based, financial industry's core status is more and more importment, at the same time, agglomeration is becoming the trend of finance's development. The development of financial agglomeration and establishment of agglomeration zones play an importent role in the development of econometric and other industries, and many scholars have made relevant researches and drew their own conclusions. But looking at these studies we find that the researches mainly focused on the regions of Pearl River Delta, Yangtze River Delta, the Yellow Sea and Bohai Rim, while other developing parts have less researches, and more importance,we also lack an overall of the financial agglomeration's development. So we see quotient of location as the measure of financial agglomeration and the 31 provinces and cities as our objects to research the development of finance agglomeration in China and its influence on economic growth.This paper has six chapters:Introduction, Literature Review, Introduction of Measure and Regression, The Development of Finance Agglomeration in China, The Influence of Finance Agglomeration on Economic Growth, Conclusions and Suggestions. Introduction (chapter one) shows the Background, Significance, Logic, Contents, Methodology, Novelties and Defects of the paper. Chapter two is Literature Review. In this chapter, we mainly introduce finance agglomeration from its definition, development, influencing factors of its development, The Influence on Economic Growth. In the third chapter, we introduce the measures and regressions. Our focus is the content of the development of finance agglomeration in China and its influence on economic growth (chapter four, five). In statistical analysis of chapter four, we compare the finance agglomeration's development of our 31 provinces from vertical and 12 years from horizontal, then we found that at present stage our finance agglomeration's development is unbalanced, showing a clear east to the west of the progressive trend of low, and financial development also shows a bigger trend at the absolute gap and relative gap; next we gave a convergence analysis, in the view of absolute convergence, conditional convergence, and club convergence we all found the unbalance among provinces can eliminate step by step. In chapter five, we make a panel data model with finance agglomeration as a explanatory variable. the results show that stand at the level of whole country, finance agglomeration has a significant positive effect on the econometric growth, but seeing from the three regions there are slightly differences and we think finance agglomeration's not scale is the reason; in order to eliminate Cross-section correlation, we made a Cross-section correlation test and FGLS revised estimate at last in both chapter and five. The last part is our conclusion and suggestions. At present we should strength finance agglomeration, expansion market openness, improve the level of technological innovation, speed up development of economic, particular the west region. With the fact that the east and central regions have a higher level of finance agglomeration but a less effect on econometric, our government should develop the scale of financial system to promote econometric growth, at the same time, we should also build our own international financial center.One of the innovation of this paper is that we draw on the method of convergence analysis to study our country's financial agglomeration trends; besides taking into account the vast territory, large population, unbalanced distribution of national resources and geographical conditions, Therefore our object of the research is not only the national but the whole regions using panel data to research financial agglomeration, and we also have a Cross-section correlation test and FGLS revised estimate. In this way we hope to get reasonable conclusions and strategies to make the research meaningful, also we hope to enrich the achievements of financial agglomeration and offer evidence to the further research.