Economic Growth And Chongqing City, The Financial Industry Cluster

With the rapid development of economic globalization and financial industry,international financial resources flows accelerates in some area, the financial industrybegins to concentrate in a central city. Many financial cluster researches aboutdeveloped countries show that there is a very close interaction between financial clusterand economic growth. Domestic scholars study the relationship between financialcluster and economic growth in the areas of the Bohai Sea, the Yangzi River and thePearl River. They also prove that there is a stable relationship between financial clusterand economic growth. As the only municipality in the west, Chongqing is the mostimportant city to promote the western development strategy. In recent years, both theeconomic and financial industry of Chongqing developed fast. This study tries to findout the cluster degree of Chongqing financial industry and the relationship between theeconomic and financial industry cluster of Chongqing. And base on that, considering theformer overseas researches, the study attempts to draw out suggestions aboutChongqing financial industry cluster development.First, this paper describes the current situation about economic development andbanking, securities and insurance sectors of Chongqing since1997. Data shows that theeconomy is growing constantly, the industrial structure is optimized, the financialindustry develops quickly and the financial system is improved gradually. But,compared to the eastern area, the financial industry of Chongqing is still way behind.Then, adopted the principal component analysis, this paper establishes acomprehensive index evaluation system to evaluate the financial industry cluster inChongqing. According to the comprehensive evaluation outcome-F, we can see that thefinancial industry cluster is growing rapidly especially after2006. Besides, this papercompares four provinces-Chongqing, Sichuan, Yunnan and Guizhou-found out that theranking about financial industry cluster. Sichuan is in the first place, Chongqing is in thesecond place, Yunnan is in the third place, and the last one is Guizhou.At last, using data from1997to2012, this paper adopts error correction model andgranger causality test to find out financial industry cluster in Chongqing is the grangerreason of economic growth, but the economic growth is not the granger reason offinancial industry cluster.