Study On The Development Of Financial Agglomeration Of Beijing,Tianjin And Hebei Province

During the recent years, the role of finance has become increasingly prominent in economic development. Finance has a positive impact on economic development. The development of the three regions gets more attention after the strategy of integration in Beijing-Tianjin-Hebei region has been presented. Finance is of great importance to local economic development. The imbalance in development of Beijing, Tianjin and Hebei regions has been for a long time. Beijing needs to transfer out part of the industry as the city has been loaded too much burden. If Tianjin and Hebei want to undertake the transferred industry from Beijing, they need to improve the infrastructure and make other preparations. In a word, these cannot be done without the financial support. This paper analyzes the development of Beijing, Tianjin and Hebei from the perspective of the financial service industry agglomeration. From the view of the financial sector to analyze the development of three regions, I hope to identify the positioning of Beijing, Tianjin and Hebei, and to promote economic development in these regions.The paper mainly studies the Beijing-Tianjin-Hebei region’s financial agglomeration with the method of combining theoretical analysis and empirical analysis. At first, the paper analyzes the related domestic and foreign research on this kind of issue, summarizes the research achievements of these documents, expresses the definition of the industrial and financial agglomeration, delimits the scope of the financial service industry, and defines the efficiency of financial agglomeration. After that, the paper analyzes the development of present situation of financial industry in Beijing-Tianjin-Hebei from three kinds of industry classification. Referring to measurement index and empirical model, I compared the various analysis methods, and found that the Location Quotient is best to measure the degree of financial agglomeration. At the same time, Data envelopment analysis method(DEA) is used to analyze the efficiency of financial agglomeration in Beijing, Tianjin and Hebei.Through comparative analysis, the financial service industry agglomeration is obviously unbalanced in Beijing, Tianjin and Hebei. Beijing is the highest whether in degree of concentration or agglomeration efficiency. It presents obvious agglomeration, and the efficiency of financial agglomeration is effective. Tianjin comes the second in these aspects. Agglomeration has also been presented. There is a certain gap between Beijing and Tianjin, but the development of Tianjin is not bad. There’s only one year that the efficiency of financial agglomeration is inefficient, and other years are effective. And Hebei comes last in the two indexes. There is a huge gap between Hebei and Beijing-Tianjin area. Agglomeration is not obvious. Therefore, it is significant for Beijing, Tianjin and Hebei to pinpoint their strategic position in development. Tianjin and Hebei can develop their own competitive industries by taking advantage of Beijing’s agglomeration advantages in the financial industry, and help their own development by using the cash flow and information superiority in Beijing. While Beijing can relieve the pressure making use of abundant resources and geographical advantages in Tianjin and Hebei area, which gets all developed. And Beijing, Tianjin and Hebei can accurately find their own positions, and promote the overall development.Here are the innovation points in the paper. On the one hand, the selected topic perspective is innovative. Previous researches for the financial services industry cluster mostly focus on its forming process, effect and influence factor. But for the efficiency of financial agglomeration study is less, so this article explores it from the new perspective. On the other hand, the research method is innovative. The paper uses the Data Envelopment Analysis method(DEA) to study the efficiency of financial agglomeration. Although this method has been developed and applied in many kinds of fields, it is uncommon that the method is used in the efficiency of financial agglomeration. It is an objective index evaluation method, which can more accurately reflect the actual situation of financial agglomeration efficiency. So the research method of the paper is innovative.