Research On The Influence Of Financial Agglomeration Degree On Small And Medium Enterprises Financing

China’s small and medium-sized enterprises themselves have the problem of "financing is difficult and expensive".In addition,the frequent occurrence and recurrence of COVID-19 since 2020,the recession of the economic environment makes their financing problems more prominent.One of the factors that can provide significant support for sme financing is the development of the financial industry.In recent years,the spatial distribution of the financial industry has become more and more concentrated.Whether its aggregation effect will have a certain impact on SME financing is the focus of this paper.Therefore,this paper takes the data of listed smes from 2010 to 2020 as samples and applies the "cash-cash-flow sensitive model" to subdivide the financial industry into banking,securities and insurance industries to study the impact of their concentration degree on smes’ financing constraints.At first,this paper USES the sample system GMM estimation method is divided into eastern,central and western three areas for the benchmark model and extended model to estimate,analysis our country small and medium-sized enterprises(smes)in different parts of the presence of financing constraints,and in the same area environment background,the different level of agglomeration of financial industry effects on the local small and medium-sized enterprise financing is different,Whether the agglomeration degree of the same industry has different effects on sme financing in different regions.Secondly,this paper further uses the dynamic panel threshold estimation method to estimate the original model nationwide,and analyzes whether there is a threshold effect on the impact of the agglomeration degree of the three industries on sme financing nationwide.Based on the estimation results of the expansion model and the dynamic panel threshold model,the influence of three industry clusters in different regions of China on the financing of local smes is obtained,and the reasons are analyzed based on the current situation of China.The estimation results of the integrated extended model and dynamic panel model show that there are threshold values and nonlinear characteristics for the influence of the three industries on the financing of smes in the eastern and national regions,but there is no threshold characteristics for the central and western regions.Across the country,the banking and insurance industry have a significant easing effect on smes’ financing constraints when the degree of agglomeration is lower than the threshold value,but the easing effect decreases significantly after crossing the threshold value.The securities industry has no mitigating effect when the degree of agglomeration is lower than the threshold value,but has a mitigating effect after crossing the threshold value.The performance of the banking industry in eastern China is the same as that in the whole country.The degree of agglomeration of the securities industry has no mitigating effect before and after the threshold value.When the degree of agglomeration of the insurance industry is lower than the threshold value,it has no mitigating effect.In the central and western regions,the banking and securities industries have no mitigating effect,but the insurance industry has a mitigating effect.Next,this paper changed the way of sample division to carry out dynamic panel threshold estimation for the divided samples,and conducted robustness test.The results all proved with the mechanism analysis above,and verified the effectiveness of this model.Finally,based on the theoretical analysis and empirical results,this paper puts forward corresponding policy suggestions from the perspective of financial resource allocation,industry and credit rating mechanism.