An Empirical Analysis of the Bidirectional Dynamic Effect between Financial Competition and Industrial Agglomeration. Issue 1 (June 2021)

• Record Type: Journal Article
• Authors: Wang, Zhengyu; Pang, Ran; Cai, Defa
• Is Part Of: Journal of physics. Volume 1955:Issue 1(2021)
• Publication Date: 2021-06
• Subjects: Physics -- Congresses; 530.5
• DOI: 10.1088/1742-6596/1955/1/012066
• Languages: English
• ISSNs: 1742-6588

Abstract

Abstract: This paper uses the data of 30 provincial-level panel in China to establish a dynamic panel simultaneous equations model. The system generalized moment estimation (sysgmm) and three-stage least squares (3SLS) are used to estimate and test the robustness of the model, respectively, to study the relationship between financial competition and industrial agglomeration. The results show that: (1) there is a bidirectional causal relationship between financial competition and industrial agglomeration. Financial competition through preferential policies to encourage technology research and development, resulting in technological innovation spillover effect to attract industrial agglomeration, but the effect is not good, and industrial agglomeration will also encourage finance to increase the competitiveness; (2) the bidirectional effect has time lag, the early financial competition and industrial agglomeration In order to have an effect in this period. All of conclusions above have important implications for changing the mode of financial competition and improving the quality of industrial agglomeration.