An Empirical Research On Financial Industry Agglomeration Of PRD Region

Since the1970s, it’s obvious that spacial agglomeration turn to a trend in the background of big development of international financial industry. Financial industry proved to be a key factor of international competition power. Regional financial industry agglomeration is a developing process to financial center, but in another sense, it’s a static result within every process. Financial agglomeration plays an important role in industrial structure optimization and economy growth. The purpose of this study is to explore the trend, characteristics and effect of the financial industry agglomeration of PRD region, constantly get new empirical evidence, to provide intellectual support for industry development policy.This paper is divided into fix parts. The first part includes the content of the selected topic background and significance of topics, research methods, etc. The second part is theoretical analysis of the financial industry agglomeration and industry cluster of the literature review. To comb the theory and literature, in order to understand the connotation of the financial industry agglomeration and research methods. The third part is empirical analysis, analyzing the development of the financial sector. The fourth part, using empirical analysis method, aiming the pearl river delta financial industry as the research object to research the financial sector trends and characteristics. The fifth part, C-D production function is used to analyse the financial industry agglomeration effect.The empirical results indicate that in PRD region, there exists he financial industry agglomeration phenomenon, but the aggregation degree is not high. Guangzhou and Shenzhen have clear financial function, but unstable factors still exist in the PRD which may change the financial agglomeration pattern. By using the Wilson’s model to measure the financial radiation in the PRD, the results show that the Guangzhou, Shenzhen and Foshan have radiation ability. Especially Guangzhou and Shenzhen play roles as the financial radiation center, and Foshan’s depends on the city of Guangzhou. The effect model shows that Guangzhou has negative effects of the financial agglomeration, while Shenzhen’s is positive.By analyzing the experience of international financial centre and combined with the feature of the development process of the financial sector in PRD, we can learn good lessons to improve the PRD competitive ability. We can take action in the following aspects:First, the financial development function of Guangzhou, Shenzhen and Foshan needs to be clarified. Second, the speed reform of the financial system should pick up. Third, financial innovation should step up its efforts.