The Impact Analysis Of The Financial Industry Agglomeration On Regional Ecnomic Growth

Finance is the total hub of the national economic operation, it is also a strong driving force to promotethe development of the ecnomy. The finance occupies an important position that other industries can’treplace in the ecnomic development. With the rapid development of global economic integration andfinancial sector, the space flow speed of financial resources has been accelerated, with financialinstitutions to focus on a particular area, then led to the economic phenomenon of financial industryagglomeration to appear. The facts show that if the level of economic development (or countries) insome areas is higher, the financial development level is higher and the level of financial industryagglomeration is higher also. Accordingly, to study the relationship between the financial industryagglomeration and economic growth is very important. Through draw lessons from domestic andforeign research results, this paper expounded the definition, formation reasons of financial industryagglomeration by using of western economics, finance, regional economics and other disciplinesrelevant theory. On this basis, we took Tianjin as an example and selected index of the financialindustry agglomeration level to reaserch the influence of financial industry agglomeration toregional economic growth, using the method combining the theoretical research and empirical analysis.The empirical methods in the process of research is Geweke decomposition test model which issuperior to the granger causality tests. The analysis results show that the financial industryagglomeration of Tianjin has significant relationship with regional economic growth whether in theshort term or in long term which is in conformity with the theoretical analysis of the essay. The resultsconfirmed that the financial industry agglomeration has a promoting effect on the development ofregional economy.Furthermore, according to the empirical test results, the article conducted a detailedanalysis of the reasons. Finally the paper came to some relevant conclusions and put forward someopinions and policy suggestions, in order to provide help to the development of Tianjin and China’seconomy in the future.