Relationship Beijing Financial Industrial Agglomeration And Economic Growth

Finance is the core of modern economy. With the rapid development of economicglobalization, the rapid flow of financial resources in the international community to forma global network of financial activities, so there is a financial activities and financialresources in key financial centers continue to gather phenomenon. Beijing is China’seconomic and financial decision-making and management center, since the reform andopening up, constantly optimize the financial environment for the development of Beijing,the financial industry cluster effect gradually, comprehensive strength and internationalinfluence of financial capital has been significantly improved. While the financial industrygathering in Beijing has begun to take shape, but with the international financial centers offinancial agglomeration lower levels, the smaller the size of the financial gathering. Themain purpose of this paper is the relationship between the financial industry gathering inBeijing and economic growth theory and empirical research.Firstly, the existing financial industry cluster and its relationship with economicgrowth at home and abroad to summarize the literature to determine the direction of thisstudy on this basis. Secondly, we use a combination of static analysis and dynamicanalysis methods, elaborated the content and features of the financial industryagglomeration, and discusses the financial industry agglomeration economies of scale andeconomies of scope, financial knowledge and technology spillovers, financial networkeffects through coordination between financial innovation and self-reinforcing effecteffects, interaction, promoting urban economic growth. Again, this article on thedevelopment status of Beijing ’s financial industry gathering qualitative analysis, and theuse of entropy as a measure of geographical extent of industrial agglomeration financialindicators show that the combined effect of the financial industry in Beijing is veryobvious. Finally, by establishing a VAR model to analyze the relationship between thefinancial industry gathering in Beijing and economic growth, the empirical results showthat presents the financial industry cluster between Beijing and economic growth moresignificant influence each other.