Research On The Impact Of Financial Agglomeration On Manufacturing Upgrade And Its Regional Differences

China has the most complete manufacturing industrialization system now.However,the problem of “large but not strong” in the manufacturing industry also emerged.With the continuous increase of ecological environment constraints and the cost of production factors,former development model regarding high investment and consumption cannot be sustained.How to promote its development has become the most important work at this stage.As a booster of economic development,finance is key to manufacturing transformation.Nowadays,the financial industry is developing towards agglomeration.Whether the emergence of financial agglomeration will affect the manufacturing industry has become a warm concern.Therefore,This article focuses on financial agglomeration and examines its impact on manufacturing upgrades.Taking into account the unbalanced regional development in my country,this article divides the country into four regions: the east,the middle,the west,and the northeast,and explores the regional differences in the impact.This article studies the impact of financial agglomeration on the upgrading of manufacturing from theoretical and empirical perspectives.First of all,to provide theoretical support for follow-up research,this article souts out the domestic and foreign literature on financial agglomeration,industrial upgrading and their association.Secondly,it analyzes the mechanism from a theoretical point and finds that financial agglomeration affects the upgrading of manufacturing industry mainly by influencing technological innovation.Furthermore,this paper uses location entropy index and the ratio of output value of high-end technology to mid-end technologyto measure the level of financial agglomeration and the level of manufacturing upgrades.Then compare the current situation of financial agglomeration and manufacturing upgrades in various provinces.The results show that the eastern area is in a leading position in both,while the central region has the fastest growth in manufacturing upgrading,and the northeast region has the fastest growth in the level of financial agglomeration.Fourth,using the panel data of provinces from 2008 to 2019 to test the spatial correlation,the results indicates that the variables conform to the conditions of the spatial econometric model.This paper finally chooses the spatial Dubin model for empirical testingfrom the perspectivesof industry and regional differences.Finally,this article takes the index of technological innovation as an intermediary variable to test the mediating effect.The main conclusions are as follows.First of all,financial agglomerationhas a postive effecton manufacturing industry,but here are differences among financial sub-sectors.Banking industry has promoted the development of manufacturing industry,while the securities and insurance industries have not yet shown a boost because they are still in infancy.Secondly,there are clear regional differences in the impact of financial agglomeration.Financial agglomeration in teh eastern,central,and western regions,can promote manufacturing upgrading,but it does not have the same promotion in the northeast.This is due to the overdeveloped heavy industry and the backward financial development in the northeast.Finally,financial agglomeration can promote the upgrading of manufacturing through technological innovation,but it exists regional differences.The mediating effect is significant in the central region,western region and northeastern region,but not in the eastern region.The eastern region develops faster,so promoting its manufacturing upgrading requires a higher level of technological innovation.Based on the conclusions,this article argues that it is important to maintain the role of banking agglomeration and stimulate the role of securities and insurance industries.At the same time,we should build secondary financial centers in the central region,western region and northeastern region to accelerate the construction of a multi-level financial development system.In addition,in order to realize the upgrading of manufacturing industry,the government should encourage innovation,accelerate the construction of communication infrastructure and improve the level of human capital and environmental protection.