Research On The Impact Of Financial Agglomeration And Government Intervention On Enterprise Total Factor Productivity

Chinese economy center has entered the stage of high-quality development,which is more dependent on total factor productivity.For enterprises,relying on factor endowment to drive economic growth cannot be sustained and the demographic dividend is disappearing.In order to maintain high-quality economic development,it is necessary to focus on enterprise total factor productivity.Financial factor plays an important role in economic development.The phenomenon of financial agglomeration has emerged recently,which is beneficial to optimizing capital allocation and promoting corporate innovation.However,Chinese financial market is still subject to government intervention.After the tax-sharing system reform policy was proposed,under the pressure of assessment using GDP as standard,local governments prefer speculative projects and the financial market’s allocation efficiency will decline in the long run.Therefore,analyzing the relationship among financial agglomeration,government intervention and enterprise total factor productivity is significant to realize collaborative development and integration strategy.This paper uses total factor productivity as hitting point and chooses Chinese A-share listed companies from 2009 to 2019 as the research object.This paper also uses location entropy and LP methods to analysis the current situation of financial agglomeration and total factor productivity in China,then deeply discusses the internal relationship between them and analyzes the impact of government intervention on total factor productivity.The main conclusions are as follows:1.The analysis of the status quo and space-time evolution of financial agglomeration,which based on the location entropy and standard deviation ellipse method.(1)The core area of financial agglomeration is obvious and the overall level of financial agglomeration in China shows a steady upward trend.(2)From the perspective of three major regions,the eastern region has a high level of financial agglomeration and ranks among the top in China,while the central and western regions have similar agglomeration levels.(3)From the perspective of spatial evolution pattern,Chinese financial industry agglomeration presents a “northeast southwest”pattern.The agglomeration center shifts to the southwest and the spatial distribution has a trend of changing to the southwest.2.The analysis of the status quo and space-time evolution of the enterprise total factor productivity,which based on the LP method.(1)Total factor productivity in China presents a positive form.(2)The enterprise total factor productivity shows an obvious pattern of “high in the east and low in the west”.The number and quality of enterprise in east are relatively high and the productivity gradually declined from the east to the west.The enterprises’ development conditions in west are limited and the productivity is always lower than the national average.3.Analysis the impact of financial agglomeration and government intervention on enterprise total factor productivity.Based on the panel data and using the systematic GMM method for empirical analysis.(1)Financial agglomeration has a significant positive effect on total factor productivity.(2)The effect of financial agglomeration has industry heterogeneity.The results show that bank and securities industry agglomeration can significantly promote total factor productivity,but the insurance industry has a significant negative effect.The role of the insurance market has not been effectively played,because the uneven distribution.(3)Excessive local government intervention hinders the promotion of financial agglomeration on total factor productivity.The interaction item between government intervention and bank industry is significantly negative,indicating that the government intervention causes higher bank resource distortion.The interaction item between government intervention and insurance and securities industry is significantly positive.Government intervention is helpful to alleviate the inhibitory effect of insurance industry agglomeration and improve the promoting effect of securities industry.(4)There is regional heterogeneity in the effect of financial agglomeration.Financial agglomeration in the eastern and central regions can promote total factor productivity,while in the western region has not been exerted.The eastern government has a rapid transformation process and the degree of marketization is deepening,so government intervention has a promoting effect.While the central and western government intervention has a negative effect.4.The suggestions for optimizing enterprise total factor productivity and promoting highquality development.According to the analysis results,this paper puts forward the principle of“co-building finance according to local conditions and improving the system for mutual benefit”,“intervening finance purposefully and coordinating government-market relationship”,“increasing regional factor input and keeping pace with each other”.This paper provides suggestions for improving enterprise total factor productivity and promoting the coordinated development of regional economies.