The Threshold Effect Of Financial Agglomeration In The Pearl River Delta On Total Factor Productivity

Under the new normal of economic development,the way to continue to rely on the high investment of capital and labor factors to promote economic growth has been slightly fatigued.The key to transformation is to improve the total factor productivity as the growth engine for sustainable economic development.The financial system can promote economic growth by promoting capital accumulation and total factor productivity(TFP)growth.In the critical period of China's economic transformation,financial agglomeration is more important by promoting the growth of total factor productivity and promoting economic growth.It is of great practical significance to study the relationship between financial agglomeration and total factor productivity.As an important economic zone for the Guangdong-Hong Kong-Macau Dawan District and the Belt and Road Initiative,the Pearl River Delta region is one of the important engines for China's economic growth.Taking the Pearl River Delta region as a research object,we can better contribute to the economic construction of the Pearl River Delta.In reading the research results of domestic and foreign scholars on financial agglomeration and total factor productivity,this paper finds that most literatures assume that financial agglomeration and total factor productivity are linear,but due to the diminishing marginal utility,there may be a nonlinear relationship between the two.Therefore,combining the research theories and empirical results of predecessors,this paper put forward the hypothesis that financial agglomeration has a nonlinear relationship with total TFP,and uses the threshold model to detect the relationship between the two,trying to test the authenticity of the hypothesis from the theoretical and empirical perspectives.The empirical analysis is mainly divided into three parts: the calculation of the degree of financial agglomeration in the Pearl River Delta region,the measurement of total factor productivity in the Pearl River Delta region,the threshold of financial agglomeration and total factor productivity.According to the results of TLP decomposition in the Pearl River Delta,the increase in total factor productivity in the Pearl River Delta region is mainly due to technological advancement,and the contribution of technical efficiency is low.From the empirical results of the panel threshold model,there is a double threshold between financial agglomeration and total factor productivity(TFP),and there are differences between the two in different intervals.After crossing the first threshold,the impact of financial agglomeration on total factor productivity is not significantly changed from negative to positive.After crossing the second threshold,the positive impact of financial agglomeration on total factor productivity declines.Therefore,the financial agglomeration in the Pearl River Delta region presents an inverse U-shaped nonlinear relationship to regional total factor productivity.Scientific research investment has no significant negative impact on total factor productivity,mainly because China's scientific research investment has not been effectively transformed into independent innovation results.Based on the empirical results,this paper proposes relevant suggestions for implementing financial policies,improving independent innovation capabilities,and strengthening financial specialization according to local conditions.