Financial Industry Agglomeration and Regional Economic Growth

The financial industry agglomeration plays an important role in the regional economic growth. On the basis of the analysis of mechanism, this paper describes the financial industry agglomeration of Beijing which can represent our country's producer service industry,and then uses extended C-D function and hybrid panel model to make an empirical test on this effect. The study shows that Beijing's financial industry has formed a good financial gathering trend and there are some differences between the six main areas of Beijing; and the financial industry agglomeration has a significant positive effect in promoting cities' economic growth. On this basis, the paper offers some policy recommendations on further strengthening Beijing's financial industry agglomeration and its effects on economic growth.