The Effect Of Financial Agglomeration In Shandong Province On Economic Growth

Finance is the core of the modern economy and the lifeblood of the real economy.With the continuous deepening of economic reform and financial development,the phenomenon of financial industry agglomeration in various provinces and autonomous regions has become increasingly apparent.The financial development of Shandong Province has achieved remarkable results,but there are also a series of problems such as low overall development level,weak service capacity,uneven development and uncoordinated development.How to play the positive role of financial agglomeration in regional economic growth and promote the balanced and coordinated development of regional economy in Shandong Province is an urgent issue to be studied.Based on the theory of financial agglomeration and economic growth effect,the 17 cities in Shandong Province are taken as research objects to explore the impact of financial agglomeration on economic growth.Firstly,it analyzes the financial development and economic growth of Shandong Province,and uses the industrial location entropy method to measure the financial agglomeration level of 17 cities in the province to analyze the changes in the level of financial agglomeration and the gaps between regions in 2001-2017.Secondly,the panel threshold regression model is used to analyze the impact of financial agglomeration and other control variables on regional economic growth.Finally,based on the nonlinear characteristics of the impact of financial agglomeration in Shandong Province on regional economic growth,countermeasures are proposed.Studies have shown that there are significant differences in the level of economic development and the level of financial agglomeration in various cities in Shandong Province.With the increase of financial agglomeration,the promotion effect of financial agglomeration on economic growth is a non-linear relationship of “N” type.When the level of financial agglomeration is weak,the increase of financial agglomeration level can promote economic growth;but when the level of financial agglomeration is strong,the increase of financial agglomeration will have an inhibitory effect on economic growth;and with the further increase of financial agglomeration level,When it reaches a higher level,the increase in the degree of financial agglomeration will also promote economic growth.According to this suggestion: cities should clarify their own financial development characteristics,implement differentiated financial policies,strengthen the financial agglomeration and diffusion effects of central cities,improve the level of financial agglomeration in surrounding areas,improve the development environment of the financial industry,and adapt financial agglomeration to regional development.Reduce regional differences and achieve a balanced development of financial agglomeration levels and economic development in the region.The innovation is to use the panel data threshold model to study the nonlinear characteristics of the impact of financial agglomeration in Shandong Province on regional economic growth and provide theoretical support for promoting the effective play of the positive effects of financial agglomeration and promoting the balanced development of the province's economy.