The Effect Of Shanghai Financial Agglomeration On The Regional Economic

Recently,the financial resources tend to flow into a certain city or region and form a financial agglomeration state,which becomes a very common economic phenomenon.In today's economic society,finance plays an increasingly important role,and financial agglomeration can accelerate the rapid growth of economy in financial agglomeration region and drive economic growth in surrounding regions through radiation,so as to achieve common development.Now,China has implemented a strategy to build Shanghai as an international finance center,with a view to drive the economic growth of the Yangtze River Delta Region and even the country through the financial agglomeration in Shanghai.Shanghai ranks the sixth place among the Global Financial Centers Index(GFCI)published in September 2017,meaning that it has become an international finance center and a financial agglomeration.This paper aims to discuss whether the financial agglomeration in Shanghai can drive the economic growth in the Yangtze River Delta Region.Firstly,this paper defines the concept and connotation of financial agglomeration,i.e.agglomeration of financial institutes,financial talents and other financial resources in a region.Secondly,in this paper,a theoretical framework that the financial agglomeration accelerates the regional economic growth is modelled,i.e.financial agglomeration mainly accelerates the industrial structure adjustment mechanism via financial function mechanism and promotes the economic growth in financial agglomeration region via knowledge overflow mechanism.However,according to the Growth Pole Theory and Core-Periphery Theory,economic growth in financial agglomeration region can promote the economic growth in surrounding regions,so to achieve the common growth of regional economy.Thirdly,this paper systematically analyzes the development of financial industry in Shanghai,and describes the agglomeration status of the banking industry,securities industry,insurance industry and financial market in Shanghai.It is found that financial agglomeration in Shanghai is relatively high,especially that of foreign-invested banks.Nearly half of these banks are headquartered in Shanghai.Shanghai also aggregates many security companies,especially those forfiutures and funds,with the total number topping the country.Meanwhile,this paper also estimates the financial agglomeration degree in Shanghai by modelling a financial agglomeration index system,indicating that Shanghai's financial agglomeration is in an elevated stage.Then,this paper empirically verifies the effect of financial agglomeration in Shanghai on the economic growth in the Yangtze River Delta Region by applying VAR model,and analyzes the effect of financial agglomeration in Shanghai on the economic growth of Shanghai,Zhejiang and Jiangsu based on the relevant data obtained.It is found through empirical analysis that the financial agglomeration iin Shanghai will obviously accelerate the economic growth in Shanghai,promote that in Jiangsu to a certain extent,but cannot obviously accelerate that in Zhejiang.This paper also summarizes the relevant experience by analyzing the formation and development of three international finance centers and three economic zones of London,New York and Tokyo.Finally,to enhance the effect of financial agglomeration in Shanghai on the economic growth in the Yangtze River Delta Region,this paper proposes reasonable countermeasures and recommendations from three aspects of accelerating the construction of Shanghai International Finance Center.?building a multi-level financial system and promoting the coordinated financial development in the Yangtze River Delta Region in consideration of empirical conclusion and international experience.