Research On The Impact Of Financial Agglomeration On Technological Progress

The sustainable growth of China’s economy has always been a major focus on the country,and the shift from an extensive growth mode to an intensive growth mode will be an important strategic reform to achieve sustainable economic growth in the future.Technological progress is the core momentum of the country’s economic growth.However,it’s a complex and challenging path to transform the final results of R&D into productivity through technological progress,which needs to be supported by a developed financial industry.Based on the background,this study aimed to analyze the impact of financial agglomeration on technological progress to explore the promoting effect and influence mechanisms of financial agglomeration toward technological progress.This study explored the impact of financial agglomeration on technological progress Using the panel data about the financial agglomeration and technological progress of 30 provinces,autonomous regions and municipalities from 2006 to 2020.Firstly,the theories of financial agglomeration and technological progress were reviewed to explore the impact mechanism of financial agglomeration on technological progress.Secondly,14 indicators of banking,insurance and securities industry,which represented the situation of financial agglomeration,were selected to analyze the trend of financial agglomeration by the entropy weight method.The numbers of the patent grants were measured and analyzed to represent the level of technological progress.Then,the panel model was used to carry out empirical research on the impact of financial agglomeration on technological progress,analyze the overall trend,and carry out heterogeneity analysis and robustness test.Finally,a deeper exploration was made to explore the specific impact of financial agglomeration on technological progress under the threshold of different levels of industrial structure by establishing a threshold model.Our results showed that the degree of financial agglomeration in Eastern China was higher than that in China Central and Western Region.Besides,the technological progress in the Eastern China also ranked at the top in China,which indicated that financial agglomeration raised the level of regional financial development and further promoted the technological progress of enterprises in the region.On the whole,financial agglomeration played a significant role in promoting technological progress.The financial agglomeration had a significant effect on promoting technological progress in the eastern and western regions,but the central region was still in the stage of energy accumulation,in which the role of financial agglomeration on technological progress had not been shown.In terms of control variables,the investment in research,government financial expenditure and openness were important factors on promoting technological progress.The influence of financial agglomeration on technological progress was promoted by the optimization of industrial structure.Our research results can provide a certain reference for the government to formulate financial policies to promote technological innovation.