Research On Economic Effect Of Financial Agglomerationin Five Southwest Provinces

The financial industry is the core of modern market economy,and its development tends to be advanced.In regions where the financial industry is more developed,the region's economic development tends to be more robust through strong financial support from the financial industry.Judging from the current situation in China,the characteristics of regional differences have been highlighted year by year.The development of various areas of the eastern coastal areas is significantly faster than that of the central and western regions.Focusing on the eastern coastal areas,the financial industry has now developed into a pillar industry in Beijing,Shanghai,Shenzhen,and Guangzhou.It has gathered a large number of financial resources and these cities have already been to the Bohai Rim region,the Yangtze River Delta,and The financial and economic development in the Pearl River Delta Region has played a significant role in radiating and has played a role in growth.In contrast,in the central and western regions,especially in the southwestern region,due to the constraints of historical factors,geographical environment,and economic and social conditions,the level of economic development in the southwestern region and people's affluence are far away from the eastern region.Therefore,it is of great significance to study the interaction between financial agglomeration and economy in Southwest China to provide a reference for further rational development of the financial industry development policy in Southwest China,to promote the coordinated economic development of the five Southwestern provinces,and to gradually reverse the widening economic gap between the eastern and western regions.Financial agglomeration is a product of financial development to a certain stage.Its production is affected by many factors.The development of regional economy can deepen financial agglomeration,and financial agglomeration also exerts various forms of influence on regional economy through various economic effects.This paper focuseson the Southwest Five Provinces,which are relatively backward in development and less concerned in previous studies,using theoretical knowledge of economics and econometric research tools to study inter-regional financial agglomeration and its economic effects.This paper focuses on the economic growth effect and the radiation effect of financial agglomeration.First,regional entropy is used to measure the financial agglomeration of the five southwestern provinces.The overall financial agglomeration in the southwest region is not optimistic,and then an indicator system is established from three levels.The financial aggregation of Chongqing,Chengdu,Guiyang,and Kunming,the representative cities in the region,was examined.Then,using the panel data model to study the economic growth effects of financial agglomeration in southwestern five provinces,in this process we also paid attention to the effects of banking,securities,and insurance agglomeration in the three major categories of China's mainstream financial industry on the economic growth of the five southwestern provinces;Finally,Wilson's model and impulse response function are used to empirically investigate the radiation effects of financial agglomeration's core area on its surrounding hinterland.This article mainly draws several research conclusions: First,compared with the national average level,the level of financial agglomeration in the southwest is still relatively low,and the results of factor analysis also show that Chongqing and Chengdu Among the four cities of Kunming and Guiyang,the financial agglomeration characteristics of Chongqing and Chengdu are more obvious.Second,in the empirical study of the economic growth effects of financial agglomeration,the results show that,in general,the WestThe financial agglomeration in the South has played a positive role in promoting economic growth,but this effect is not yet obvious,and its impact is also less than the impact of capital investment on economic growth;from the perspective of industry differences,the three major categories of mainstream financial industry Bank of China The largest contribution of industrial agglomeration to economic growth was followed by the agglomeration of the securities industry,while the insurance industry agglomeration did not promote or even hinder economic development in the southwest region.However,the impact of banking and securities agglomeration on the economywas not significant.The impact of financial agglomeration in the southwest on economic growth is mainly manifested by the banking industry.Thirdly,in the study of the radiation effects of financial agglomeration,Wilson's model calculations show that radiation in Chongqing is greater than that in Chengdu,and can cover most of Sichuan and Guizhou but hardly cover Tibet.The result of the impulse response function is also It shows that the existence of Chongqing in other provinces in the southwest does indeed exist.Chongqing's financial development has indeed played a certain role in stimulating the financial development of the regions within its radius of radiation,but this positive promotion effect does not remain stable.Compared with previous studies,the economic effects of financial agglomeration in underdeveloped regions such as Southwest China have not yet been fully realized.Therefore,five policy recommendations have been proposed in five aspects to improve financial agglomeration in Southwest China.