Research On The Influence Of Financial Agglomeration On Total Factor Productivity

Since the reform and opening up,China's economy has gained rapid growth,while,the increasing rate of which has constantly declined for recent years.Facing this problem,our government advocated supply side structural reform and planned to break through from the tertiary industry and total factor productivity.This thesis is to analyze the relation between the financial industry and the level of total factor productivity,hoping to expound the relation deeply with theoretical analysis,status analysis and empirical analysis,to put forward some applicable suggestions for the economic development of China.In theoretical analysis,this thesis firstly summarized the related documents about the relation between financial industry agglomeration and the level of total factor productivity.It mainly includes the connotation,causes,forms and factors affecting the total factor productivity of the financial industry cluster.After that the paper analyzed the relation theoretically.It referred to the connotation,cause and form of financial industry agglomeration,based on which the theoretical mechanism of financial industry agglomeration's influence on total factor productivity was analyzed.A conclusion was made:the influences are mainly embodied in scale economy.transaction fee.externality and resource allocation.As to status analysis,a calculating method is introduced,about the two main indicators:financial industry agglomeration and total factor productivity.Among them.the former adopts location quotient and the latter DEA-Malmquist.According to the econolic development distinction of different districts,the thesis adopted packet inspection on 30 districts of China,except Tibet.The accordingly declining level of agglomeration among the east middle and west part of China not only in the integrality of financial industry but also the sub-industry of finance such as banking,security and insurance.However,their distinction on the level of total factor productivity is not that obvious.Empirical analysis is made based on the results of the test index in the third part,the level of urbanization,the average educated years of employees,the use ratio of fixed investments and the provincial dynamic panel data model from the year 2003 to 2004.And the result is that financial industry agglomeration promotes the total factor productivity within regional heterogeneity.Specifically,banking and insurance promote it while security works the other way around.Furthermore,the acceleration decreases one by one from the east,middle and west parts of China.In detail,security only functions positively in the developed east China and the influence of security in the east and middle parts is not that remarkable than that in the west.