The Impact Of Financial Agglomeration On Total Factor Productivity Of Manufacturing Industry In Henan Province

At present,China has formed many regions with relatively developed manufacturing industries,such as the Pearl River Delta and the Yangtze River Delta.These regions have become an important support for the rapid development of China's manufacturing industry in recent decades.Manufacturing can establish and strengthen our country.Manufacturing is not only the main battlefield for technological innovation,but also have become an important area of supply-side structural reform.To promote the healthy and sustainable development of economy,the high-quality manufacturing industry is necessary for China.Therefore,this is also an important development goal for all regions in China in the future.As an important province in the sense of China`s population and economy,Henan Province needs to meet the strategic goals of national development.Meanwhile it should to rely on the manufacturing industry to achieve the task of cultivating new advantages for development simultaneously.In 2010,when Foxconn was stationed in Zhengzhou,The import of high value-added products for smartphones has increased dramatically.This fully utilized the location advantages of Xinzheng Airport and led to the rapid development of the aviation port area.More importantly,it have become an important initial driving force to promote the manufacturing`s transformation and upgrading of manufacturing industry in Henan Province.Relying on the location advantages of Henan Province,the perfect land and air transportation system,rich human resources,sound economy and policy support,Henan Province has achieved good results in manufacturing.In the 2018 China Advanced Manufacturing City Development Index,Zhengzhou ranked 17 of the top 50 cities.In the ranking of the top ten representative clusters of China's advanced manufacturing industry,Zhengzhou Luoyang and Xinxiang City Group is also on the list.From these achievements we can see that,Henan Province has the ability to promote the high-quality development of manufacturing industry and achieve the development goal of Made-in-China 2025.Total factor productivity(TFP),one of the core indicators to measure the high-quality development of manufacturing industry,has become a hot topic in recent years.A high-quality economic development model relies on the contribution of total factor productivity to the economy.Cai Wei,deputy dean of the Chinese Academy of Social Sciences,believes that the human capital released by improving the resource mismatch effect of labor,as well as the dependence on institutional mechanisms and technological innovation,is the key development direction of future total factor productivity growth.Due to overcapacity and the new normal of China's economy,the proportion of manufacturing loans of financial institutions has been declining in recent years.Manufacturing is a typical foreign financing industry,so the lack of funds should attract people's attention.Our government should pay attention to the supporting role of Finance in the development of manufacturing industry.In the meantime,we also need to take measures to introduce financial resources into the manufacturing industry.From the perspective of financial agglomeration,this paper analyzes the causes of financial agglomeration on the theoretical level.Meanwhile,we also find out the mechanism of financial agglomeration's influence on total factor productivity of manufacturing industry.By using Henan Province`s data of financial industry and manufacturing industry from 2006 to 2016,this paper empirically analyzes the impact of financial agglomeration on the total factor productivity of manufacturing industry in Henan Province.On the whole,the accumulation of financial industry has promoted the improvement of total factor productivity in the manufacturing industry.Banking agglomeration promotes the improvement of TEECH;insurance agglomeration promotes the progress of total factor productivity mainly by improving EFFCH;and securities manufacturing industry promotes technological progress less than banks and insurance industry.Therefore,this paper proposes the following policy recommendations: Henan Province should accelerate the transformation and upgrading of the banking industry while transforming the banking industry from a factor-driven to a technological innovation drive?Accelerate the formal development of the insurance industry,further enhance the promotion of the insurance industry to improve technical efficiency?By vigorously developing the direct financing market and increasing the proportion of capital inflows to the manufacturing industry,the role of the securities industry in promoting the total factor productivity of the manufacturing industry will be enhanced.In addition,in order to fully use of Zhengzhou's advantages as a national central city,Henan Province should take the development of superior industries as the leading factor to promote the upgrading of manufacturing industry structure and improve the total factor productivity of manufacturing industry.