Research On The Relationship Between Financial Industry Agglomeration And Economic Growth From The Perspective Of Provinces

As the hub of modern economy,the development and growth of Finance and the steady growth of economy are closely related.General Secretary Xi Jinping pointed out in the report of the Nineteenth Party Congress that we should deepen the reform of financial system and enhance the ability of financial services to the real economy.At present,all provinces are vigorously implementing the strategy of financial agglomeration.Thirty-one provinces in China(including autonomous regions and municipalities directly under the Central Government,the same below)have different levels of economic development and degree of financial agglomeration.The relationship between financial agglomeration and economic growth is also different.Some provinces cannot inject capital vitality into economic development because of the low level of financial industry development,while some provinces are overaggregated in financial industry,which makes regional economy "de-real" and "empty".Therefore,what is the relationship between financial industry agglomeration and economic growth in China’s provinces,how to rationally plan the level of financial agglomeration according to their own conditions in order to make financial and economic coordination match and give full play to the role of financial agglomeration in promoting economic growth,which is an important topic of financial development research in China’s provinces.Based on the above situation,this paper firstly combs the relevant literature at home and abroad,and summarizes the research and theory of financial industry agglomeration,economic growth and their correlation.Then,it makes a theoretical analysis of the impact mechanism of financial industry agglomeration on economic growth,deduces the demand-related effect,capital spillover effect and market congestion effect of financial agglomeration by LS model,and summarizes the positive and negative correlation between financial agglomeration and economic growth.Next,the paper uses principal component analysis and location entropy method to measure the current situation of financial industry development and aggregation trend in China’s provinces,and make descriptive analysis combined with economic growth.Then,based on the economic data of 31 provinces in China from 2003 to 2017,the panel model is used in the empirical analysis of the relationship between financial industry agglomeration and economic growth.This paper obtains the regression coefficients of financial industry agglomeration to economic growth at the national level as a whole,explains the "positive U" curve between financial industry agglomeration and economic growth concretely,figures out the latest marginal effects of financial industry agglomeration on economic growth in various provinces and explain them by classification.Finally,the conclusion of this paper is summarized,and some policy suggestions are put forward to enhance the efficiency of provincial financial industry agglomeration and promote the benign interaction between financial industry agglomeration and provincial economic growth.