Financial Agglomeration,Spatial Spillover And Regional Economic Growth

International experience shows that the agglomeration of financial resources is conducive to promote regional economic development and is the engine of economic growth,but there is a great imbalance in the development of China’s financial industry,and there are great differences in regional development.The spatial agglomeration of China’s economic activities and industrial distribution has continuously formed a core-periphery pattern with the eastern coastal cities as the core and the central and western inland cities as the periphery,which has aggravated the regional disparity in China.Therefore,it is of great significance to study the relationship between financial agglomeration and regional economic growth at the spatial level in theory and practice.This paper introduces financial variables into the framework of the new economic geography local spillover(LS)model,and expounds the impact of capital agglomeration on regional economic growth theoretically.Firstly,financial agglomeration is conducive to the formation of economies of scale within the region,and then to the formation of self-reinforcing effect,and financial agglomeration can trigger information spillover effect.These two are regarded as financial agglomeration,which can drive regional economic growth;Secondly,the core area of financial agglomeration has a spatial diffusion effect,which can radiate the surrounding areas and stimulate the economic growth of the surrounding areas,that is,spatial spillover effect.Through describing the present situation of the agglomeration degree of financial industry in China,it is concluded that the financial industry and its subdivided industries all have obvious spatial agglomeration characteristics.From the quantitative description of the changes in the agglomeration degree of financial industry and the provincial differences,it is concluded that the regional agglomeration gap of financial industry in China has a narrowing trend.This paper uses the empirical data of provincial level in China from 2004 to 2017 to test the hypothesis.Using the SDM model and the decomposition method of spatial effects,the paper examines the effects of financial agglomeration on regional economic growth in China under three spatial weight matrices.The conclusions are as follows:Firstly,the effect of financial agglomeration on regional economic growth is obvious in China,economies of scale and information spillover effect play a positive role in the impact of financial agglomeration on economic growth.The agglomeration of banking industry,insurance industry and shadow banking industry have significant positive effects on the regional economic growth,and the promotion effect of banking agglomeration is the greatest,while the securities industry has not shown the promotion effect on the regional economic growth.Secondly,financial agglomeration has a positive spatial spillover effect on regional economic growth,and the spatial spillover effect is greater than the local growth effect;Thirdly,the grouping test results of the eastern,middle,western and northeastern regions show that there is regional heterogeneity in the role of financial agglomeration on regional economic growth.