Location Quotient,Financial Agglomeration And Regional Economic Growth

Financial agglomeration refers to the dynamic process in which financial institutions,financial enterprises,financial instruments and other elements and resources are concentrated in a certain area to form a financially dense system.Finance is the core of the modern economy,and financial and economic development are inseparable.In recent years,more and more scholars have paid attention to the role of financial agglomeration in promoting regional economic growth.Under the background of regional balanced development strategy,how can we promote the economic development of the central and western regions of China by using financial agglomeration?How to achieve targeted financial agglomeration in the central and western regions?In order to solve the above problems,this paper takes financial agglomeration and regional economic growth as the research object,and discusses the transmission factors and financial variables of economic agglomeration in different regions of China’s eastern,central and western regions.Firstly,through the combing of related literatures,the paper analyzes the causes of financial agglomeration from the relationship between financial and economic development,financial geography,location selection theory and industrial agglomeration theory.Study the relationship between financial agglomeration and economic growth from the perspectives of financial inclusion in economic development,information theory,economies of scale,and transaction costs.Through the analysis of the driving forces of financial agglomeration in Beijing and Shanghai,two major financial agglomeration districts in China,Beijing,as a national political,cultural and economic center,has attracted the headquarters of a large number of financial institutions to gather its headquarters.The headquarters economy is obvious,forming China’s financial decision-making.Financial supervision and national credit resource allocation and control center.Shanghai relies mainly on the system,and its market driving force is more significant.The paper uses location quotient to measure the concentration of output value of China’s eastern,central and western banking,insurance,securities,financial employment,financial and insurance industries,and analyzes the provinces of eastern,central and western China from the perspective of financing,employment and output value.The current financial agglomeration status and development trend;the results show that the level of financial agglomeration in the eastern part of China is significantly higher than that in the central and western regions.As far as the country is concerned,Beijing and Shanghai have the highest level of concentration;stocks and bonds are concentrated at a higher level than banks and insurance,stocks and bonds.The national distribution is most closely related to the level of regional economic development;the national distribution of financial employment concentration is relatively small.At present,the level of regional financial agglomeration in China is in line with the level of regional economic development,and regional financial agglomeration is greatly affected by regional economic development.By adopting the panel model,the financial employment location merchants,bank location quotients,insurance location quotients,stock location quotients,and bond location quotients of each province are used as explanatory variables,and the per capita capital investment of each province is taken as the control variable,and the per capita GDP of each province is used as the explanatory variable.Empirical regression analysis of the impact of different financing channels and financial industry human capital on economic growth in different regions.The regression results of the national panel model show that bank agglomeration and bond agglomeration have a significant positive effect on national economic growth,while the financial industry employment agglomeration has a significant negative effect on national economic growth.The analysis is related to the current oversupply of human capital in the financial industry.The regression results of the panel models in the east,middle and west show that the financial employment concentration has a significant negative effect on the eastern economic growth;the concentration of the banking industry and the concentration of the bond industry have a significant positive effect on the economic growth in the east;the concentration of financial employment,insurance The degree of agglomeration has a significant negative effect on the economic growth of the central region;the concentration of banking industry has a significant positive effect on the economic growth of the central region.The concentration of financial employment has a significant negative impact on economic growth in the west;the concentration of bond financing has a significant positive effect on economic growth in the western region.Aiming at the regional financial agglomeration and regional economic growth transmission factors and financial variables,it is proposed that the eastern region should improve the four financing modes of loans,insurance,stocks and bonds,vigorously develop the capital market,and give full play to the role of stocks and insurance financing.The central and western regions should actively introduce foreign banks and joint-stock commercial banks,vigorously support small and medium-sized commercial banks in the region,build a diversified and multi-level banking system,provide diversified services for different levels of customers,expand financial services coverage and the central and western regions.The financial support of the economy.At the same time,it will play the role of policy-oriented banks,enhance investment in agriculture and infrastructure in the central and western regions,and cultivate the creative capacity and sustainable development competitiveness of underdeveloped regions.