Research on the Influence Mechanism of Financial Agglomeration on Technological Progress —A Comparative Perspective on Cities and Airport Hub Economic Zones
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Research on the Influence Mechanism of Financial Agglomeration on Technological Progress —A Comparative Perspective on Cities and Airport Hub Economic Zones
SUN Jian-guo, GAO Yan
School of Economics, Henan University, Kaifeng 475004, China
Abstract Based on the panel data of 24 cities and airport hub economic zones from 2007 to 2016 in China, this paper studies the impacts of financial agglomeration on the technological progress of cities and airport hub economic zones and its differences by using dynamic GMM method. The results show that in cities, financial agglomeration and banking agglomeration have a significant impact on the total factor productivity(TFP) while in airport hub economic zones, there is no obvious impact on TFP from the agglomeration of urban finance, banking, securities, or insurance as opposed to a significant positive effect from government support. This shows that there is regional difference in the impact of financial agglomeration on technological progress in China. Especially in airport hub economic zones, financial agglomeration does not promote technological innovation or development of industries in the zones. Furthermore, the airport hub economic zones in China still follow the government-led extensive development model in which urban finance agglomeration does not fully realize its function of optimizing capital allocation. Therefore, local governments should formulate rational policies of urban financial agglomeration development according to the characteristics of various urban factors, and guide the effective agglomeration of financial industries that meet the need of urban development in various functional areas of the city.
SUN Jian-guo,GAO Yan. Research on the Influence Mechanism of Financial Agglomeration on Technological Progress —A Comparative Perspective on Cities and Airport Hub Economic Zones. Economic Survey, 2019, 36(5): 017.
2019, Vol. 36 
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