The Impact of Financial Agglomeration on Regional Economic Growth

Based on the re-deduction of endogenous economic growth theory, this paper analyzes the mechanism of financial agglomeration affecting regional economic growth from the perspective of information flow and financial innovation, and proposes two theoretical hypotheses accordingly. Finally, this paper selects the data from 2004 to 2015 in 31 provinces of China as the research sample, and makes the regression analysis by GMM method. We finds that all the variables proposed in this paper have passed the 1% significance level hypothesis test, but only the cross-term of financial agglomeration and information hinterland border (FA*IH) and the cross-term of financial agglomeration and financial innovation (FA*FI) are positive, which is consistent with the theoretical hypothesis proposed in this paper.