Study on the Influence of Financial Agglomeration on China’s Regional Economic Development

Zhangyang Mao

doi:10.62051/ijgem.v8n3.02

Authors

Zhangyang Mao

DOI:

https://doi.org/10.62051/ijgem.v8n3.02

Keywords:

Financial agglomeration, Regional economic development, Financial allocation, Industrial upgrading, Financial supervision

Abstract

This study examines the impact of financial agglomeration on China’s regional economic development, revealing its positive effects in enhancing capital allocation efficiency, reducing corporate financing costs, and driving industrial upgrading. It simultaneously highlights negative impacts such as financial risk concentration and regional development imbalances, providing theoretical foundations and policy references for promoting coordinated development between finance and regional economies. Through analysis of the formation mechanisms and pathways through which financial agglomeration influences regional economic growth, the research concludes that while financial agglomeration positively impacts capital allocation efficiency, reduces corporate financing costs, and promotes industrial upgrading, it also carries adverse effects including financial risk accumulation and exacerbation of regional development disparities. This study offers theoretical support and policy recommendations to facilitate harmonious development between financial agglomeration and regional economic coordination.

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