Research On The Impact Of Financial Agglomeration On The Upgrade Of Industrial Structure In The Western Region

With the continuous development of the regional economy,the flow of financial resources between regions has become increasingly apparent,and financial agglomeration has become the main direction for the evolution of the financial industry.Financial agglomeration has an irreplaceable boost to regional economic transformation and industrial structure optimization and upgrading.Therefore,on the basis of coordinating the resources of all parties,and in accordance with the characteristics of each region’s industrial structure and the status of economic development,avoid excessive and uncontrolled construction,make full use of the “The Belt and Road ” initiative,and accelerate regional financial agglomeration and optimization.Industrial structure has become an urgent task for China to further transform its economic development model.This article takes the vast western region of China as the research object,and combines theoretical analysis and empirical analysis to study the impact of financial agglomeration on the optimization and upgrading of industrial structure.Firstly,the relevant literature at home and abroad is sorted out,and on the basis of summarizing the connotation of financial agglomeration and the effect of financial agglomeration,the mechanism of the influence of financial agglomeration on the optimization and upgrading of industrial structure is discussed.Secondly,this paper analyzes the current status of the development of the financial industry and the status of the industrial structure in the western region,and uses the location entropy method to measure the level of financial agglomeration in the western region based on the data from 2009 to 2018 of the12 provinces in the western region.A panel data regression model was established by selecting financial agglomeration data and industrial structure upgrade data from 12 provinces in the western region.Considering that the upgrading of industrial structure is the organic unification of the rationalization of industrial structure and the advancement of industrial structure,a regression model was established for research;and the effect of individual and point-in-time fixed-effect models on the impact of financial agglomeration in the western regions on the upgrading of industrial structure was further analyzed.Performance differences.Finally,based on theoretical analysis and empirical results,comprehensively considering the specific situation of the western region,policy recommendations are put forward to provide an empirical reference for better playing the leading and supporting role of financial agglomeration in the adjustment and optimization of industrial structure in the western region.The main research results of this paper include:(1)The level of agglomeration of the financial industry in the western region is lower than that of the national level,but the overall level is gradually rising and has a trend of agglomeration.And the level of financial agglomeration differs among various industries within the financial industry.The agglomeration level of the banking industry is the highest,followed by the agglomeration level of the insurance industry.The trend of agglomeration has become more apparent,and there is much room for increase in the agglomeration of the securities industry.(2)From the empirical results of the impact of financial agglomeration on the rationalization of the industrial structure,the banking industry agglomeration has a significant role in promoting it,but the insurance industry has instead restrained the rationalization of the industrial structure,and the securities industry has not played a significant role due to the slow development;According to the empirical conclusions of the effect of structural advancement,both bank agglomeration and insurance industry agglomeration have a significant effect on the advancement of industrial structure;the effect of financial agglomeration on the upgrading of industrial structure varies among provinces in the western region.Overall,the concentration of the financial industry in the western region has promoted the optimization and upgrading of the industrial structure and has gradually increased over time.