Research On The Impact Of Financial Agglomeration In Jiangsu Province On The Upgrading Of Manufacturing

Manufacturing industry plays an important role in the national economy.Facing the pressure of economic transformation and upgrading,the development level of manufacturing industry symbolizes the comprehensive strength and competitiveness of a region.Since the reform and opening up,under the background of global economic crisis,international trade friction and the disappearance of domestic demographic dividend,the development of manufacturing industry is facing internal and external problems in Jiangsu Province,and it is urgent to realize the overall manufacturing transformation and upgradation.On the basis of realistic background and relevant theories,this paper will take the manufacturing upgradation as the research object,and study the impact of financial agglomeration on manufacturing upgradation,so as to provide reference for the further development of financial industry and manufacturing industry,in order to realize of high-efficiency economic growth.This paper first summarizes the relevant theories of financial agglomeration and manufacturing upgradation,then combs the reasons for the formation of financial agglomeration and the path selection of manufacturing upgradation.Combined with relevant theory,this paper analyzes the spillover effect and influence mechanism of financial agglomeration on manufacturing upgradation.Secondly,using the location entropy index to measure the financial agglomeration indicators,respectively from the provincial level,municipal level and regional level to analyze the status of financial agglomeration in Jiangsu Province.The results show that the level of financial agglomeration in Jiangsu Province has steadily improved,but the degree of agglomeration is not obvious as a whole.There is different between regions.Then using labor productivity to measure manufacturing upgradation,the results show that the manufacturing upgradation presents a trend of first rising,then falling and then flattening in Jiangsu Province.There is different among regions too.Thirdly,on the basis of the above impact mechanism and current situation analysis,this paper uses panel data of 13 cities in Jiangsu Province from 2006 to 2018 to test the impact of financial agglomeration on the manufacturing upgradation,and further study whether the cost of manufacturing industry plays a role in the impact of financial agglomeration on the manufacturing upgradation.The empirical results show that:(1)On the whole,financial agglomeration has a significant role in promoting the manufacturing upgradation in Jiangsu Province,but from the regional perspective,therole of financial agglomeration in promoting the manufacturing upgradation shows obvious regional differences.Financial agglomeration has the strongest role in promoting the upgrading of manufacturing industry in the southern Jiangsu region,followed by the northern Jiangsu region and the central Jiangsu region.(2)The level of government participation,urbanization,opening and the level of economic development significantly promote manufacturing upgradation.(3)The cost of manufacturing industry has a significant intermediary effect on the manufacturing upgradation.Financial agglomeration can achieve manufacturing upgradation by reducing the production cost,transaction cost and information cost of manufacturing enterprises.Finally,according to the results of empirical analysis,combined with the reality of Jiangsu Province's financial system reform and manufacturing industry development,this paper puts forward corresponding policy recommendations from the perspective of government,enterprises and financial institutions,in order to achieve the vigorous development of regional economy in Jiangsu Province.To sum up,the conclusions of this paper enrich the existing literature results,provide some experience support for the relevant theories,and provide some operation a for cities to promote the development of financial industry and manufacturing industry.