Study On The Impacts Of Financial Agglomeration On Industrial Structure Adjustment In Yangtze River Economic Belt

At present,China's economy is undergoing a crucial period of transition.To transform the economic growth pattern by optimizing industrial structure has become the main goal of China's current economic development and the financial industry is playing a crucial role in the optimization and upgrading of industrial structure.Financial agglomeration is a manifestation of finance developing to a certain level.With the continuous development of China's economy,financial services industry tends to concentrate in a certain area,so as to share information and transportation infrastructure,and coordinate and cooperate with each other,thus enhancing the allocative efficiency of financial resources and providing energy and driving force for the upgrading of the industrial structure in the region.The Yangtze River Economic Belt spans through China's three major regions which are eastern,central and western regions,and contains 11 provinces,whose population and GDP counts for more than 40%of the national total number,playing an important role in China's economic and financial system.Therefore,how to better play financial agglomeration's leading and supporting role in the transformation and upgrading of regional industrial structure has become an issue worthy of in-depth research.This paper mainly studies the degree and direction of the influence that financial industry agglomeration have on the adjustment and optimization of industrial structure in the Yangtze River Economic Belt.First of all,by reviewing the theories about financial agglomeration and industrial structure,from the perspective of the polarization and diffusion effects,this paper respectively discusses the mechanism through which financial agglomeration influences the rationalization and advancement of industrial structure.Financial agglomeration mainly improves the efficiency of resource allocation through its fund concentration function,industrial integration function,technology spillover effect,risk decentralization function,and innovation incentive effect,and further drives the region to adjust and optimize its industrial structure.Secondly,based on the analysis about the current development of financial industry and the status quo of industrial structure adjustment in the Yangtze River Economic Belt,this paper collects relevant data of the banking,securities,and insurance industries in the 11 provinces and the period is from 2007 to 2016.By constructing Location Quotient Indexes to measure the level of financial agglomeration,this paper shows the speed and characteristics of the agglomeration of financial service industries in each region of the Yangtze River Economic Belt,and discusses the major difficulties faced by Yangtze River Economic Belt in the process of industrial restructuring.Thirdly,by building a time and entity fixed-effects model and constructing indexes of industry structure rationalization and industry structure advancement,this paper empirically studies the impacts of financial agglomeration on them.The results show that:(1)In terms of the rationalization of industrial structure,the financial agglomeration of the Yangtze River Economic Zone can promote the rationalization of the industrial structure.Specifically,the banking industry agglomeration has the biggest positive effect on the industrial structure rationalization and the effect of insurance industry agglomeration is the minimum,while the promotion of the securities industry agglomeration cannot significantly promote the rationalization of the industrial structure in the Yangtze River Economic Belt in the statistical sense.(2)From the perspective of industrial structure advancement,the banking industry can significantly promote the advancement of the industrial structure in the Yangtze River Economic Belt and the promotion effect of the securities industry is not significant,while the insurance industry agglomeration will prevent the advancement of industrial structure.From the time point of view,in the past decade,the promoting effects financial integration has on the advancement of industrial structure have been increasing as a whole in the Yangtze River Economic Belt.Finally,according to the theoretical analysis and empirical research conclusions,combined with the actual situation of the socio-economic development of the Yangtze River Economic Belt and guided by "green development and ecological development",this paper puts up with specific policy recommendations and expects to provide an empirical reference about better playing the guiding and supporting role of financial agglomeration in the process of industrial restructuring and optimization of the Yangtze River Economic Belt.