Research On The Impact Of Financial Agglomeration On High Quality Urban Development

After more than 40 years of reform and opening-up,China’s glorious achievements in economic and social development have enabled it to rapidly leap to the second largest economy in the world.However,the development model that takes resources as the sacrifice has resulted the economic vitality soften,improper structure and ecological environment deterioration and other problems come one after another.In order to change this predicament,General Secretary Xi proposed five new development concepts in 2015,and the government work report included the concepts of "carbon peak" and "carbon neutral" for the first time,which demonstrates China’s desperate determination to accelerate the revolution of its economic development.Since its introduction,the Yangtze River Delta integration strategy has been receiving widespread attention from all walks of life.As China’s economic development enters a new stage of development,how to promote the higher quality development of the Yangtze River Delta urban cluster has become an important topic for economists to research.The financial industry is intricately associated the development of the economy and society through its virtue of a series of functions such as price discovery,resource allocation,credit creation and risk management,etc.The emergence of financial agglomeration also has a profound impact on the development of economy and society.Hence,it is exceedingly necessary to explore the financial agglomeration and high-quality urban development in the Yangtze River Delta region,and explore the mechanism of influence between both of them,whether from the perspective of theoretical expansion or inspiration for the present world.First,through the interpretation of existing research literature and theories,this paper explains the mechanism of financial agglomeration on the promotion of high-quality development.Second,a comprehensive evaluation index system of the degree of highquality development is constructed from the five dimensions of the new development concept,and the panel data of 27 cities in the Yangtze River Delta integration strategy from2005 to 2019 are used as research samples to measure their financial agglomeration and high-quality development levels.Again,the relationship between financial agglomeration and high-quality development is empirically tested by constructing a traditional panel econometric model without considering regional spatial association and a spatial panel econometric model that includes spatial interaction effects.Lastly,this paper presents appropriate initiatives and recommendations to strengthen the level of regional financial agglomeration and facilitate it to better foster the high-quality development of urban economy.The main conclusions of the research are as follows.First,the degree of financial agglomeration and high-quality urban development in the Yangtze River Delta city cluster show a general trend of gradual increase,but there are obvious inter-city differences.The speed of increase in the degree of high-quality development varies among cities,and the difference in the degree of high-quality development among cities is obvious at the beginning of the period,cities in southern Jiangsu and northern Zhejiang have a relatively larger index of high-quality development,and the difference in development among cities gradually decreases in the later period.The intensity of financial agglomeration in cities,large differences.The intensity of financial agglomeration is uneven,and there are large inter-provincial differences,the cities with outstanding financial agglomeration are mainly Shanghai,Hangzhou,Nanjing and Suzhou,and other cities that have long been performing well in terms of economic development,the trend of financial agglomeration in cities in Zhejiang province shows significant heterogeneity.Second,the degree of high-quality development of 27 cities in the Yangtze River Delta region shows a significant positive spatial correlation,which means cities with a high degree of high-quality development have a higher degree of high-quality development in their surrounding cities.Third,there is an "inverted U-shaped" correlation between financial agglomeration and high-quality development in the Yangtze River Delta region,in which the degree of high-quality development of cities will be enhanced with the increasing level of financial agglomeration at the early stage of development,and the process of highquality development will be inhibited when the level of financial agglomeration exceeds a certain level.Fourth,financial agglomeration of cities in the Yangtze River Delta region has a considerable spatial spillover effect on urban high-quality development,which means in addition to the positive impact on the local area,the financial agglomeration also contributes to the high-quality development of neighboring areas.Fifthly,the spatial spillover effect of financial agglomeration on high-quality development in the Yangtze River Delta region also shows an "inverted U-shaped" relationship,the increase of financial agglomeration in neighboring cities will promote the high-quality development of the city,but when the degree of financial agglomeration crosses the extreme point,it will also inhibit the highquality development of the city.Sixth,the inter-regional effect of financial agglomeration on the role of high-quality urban development in the Yangtze River Delta is stronger than the intra-regional effect.