Research On The Impact Of Financial Industry Agglomeration On Urbanization

Our country is facing the problem that the quality of urbanization needs to be improved.Urbanization construction cannot be separated from the strong support of finance.In the past,many scholars have explored its influence from the perspective of financial development,but because of the gathering state of financial resources in our country at present.Therefore,it is important to discuss this problemt from the perspective of agglomeration.Considering the strong liquidity and spillover effect of financial resources,spatial factors should also be taken into account.In order to better study this subject,this paper will conduct in-depth analysis on the east,middle,west and northeast.Based on the analysis of existing literature and combining theoretical and empirical analysis methods,this paper puts forward three hypotheses: First,financial agglomeration will promote urbanization.Second,financial agglomeration has spatial spillover effect on urbanization.Third,the spillover effect in the eastern region will be significant.In terms of empirical side,this paper will based on the data of 30provinces(except Xizang)from 2006 to 2020.The urbanization increased year by year.The agglomeration level is measured by the location quotient.The results show that the level of financial agglomeration in the eastern region is relatively high but shows a weakening trend.Although the level of financial agglomeration in the central and western regions is lower than that in the eastern region,the agglomeration effect is continuously enhanced.Based on spatial autocorrelation analysis and partial differential method.The results show that: financial agglomeration promotes urbanization and has obvious spillover effect.Especially the banking and insurance.Second,in the subregional study,the financial agglomeration in eastern China has a significant spillover effect on urbanization.The agglomeration of banking industry in western China plays a leading role in the process of urbanization in this region.Therefore,the government should speed up the improvement of relevant policies,encourage the flow of financial resources between different regions,strengthen inter-regional financial cooperation,encourage the innovation,and strengthen the spillover effect,so as to make financial agglomeration can promote urbanization better.