An Empirical Study On Financial Agglomeration And Regional Economic Growth

Finance is an important part of economic,and can promote the economic growth of a country or region.Although most of the city in China vigorously develop the financial industry as the goal,and achieved a certain scale in the financial agglomeration,but there are also unbalanced economic and financial development.Besides,the level of financial agglomeration is relatively low.The economic of the eastern region is prosperity with rich financial resources,while the development of the financial industry in the Midwest is rather backward.Therefore,it has practical significance to study the states of the financial agglomeration in China and the relationship between financial agglomeration and economy.On the basis of existing research,this paper discusses the impact of China’s financial agglomeration on economic growth.According to the past scholars’ research,we have theoretically analyzed the cause and evolution process of financial agglomeration.And financial agglomeration can drive the development of local and surrounding areas.Under normal circumstances,the higher the degree of financial agglomeration,the higher the level of economic development of the region.Based on the summary of literature review,we use Chinese 31 provinces’ annual data from 2001 to 2015 year to build a comprehensive evaluation index.And then we use the comprehensive evaluation index to discuss the degree of financial agglomeration and the degree of economic growth in Chinese.Then we use spatial econometric model to establish the spatial panel model with 0-1 geographic weight matrix,economic weight matris and co-movement weight matrix,and analyze how financial agglomeration impact economic.Finally,we use Wilson model to measure the theoretical method of the radii radii of the financial agglomeration in all the provinces of our country,and put forward some relevant policy suggestions.The results show that there is obvious difference when talk about the level of economic states and financial agglomeration,and the regional development is not balanced.The regional distribution of financial agglomeration and economic growth is approximately the same.By introducing cooperated spatial weight matrix,the fitting effect of spatial econometric model has been significantly improved.The total scale of finance,banking industry,securities industry and insurance industry will have an impact on economic growth,which confirms that financial agglomeration plays a positive role in economic growth.