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Financial aggregation, financial resource allocation, and regional economic growth

Author

Listed:
  • Li, Yaxuan
  • Zhao, Jing
  • Wu, Zheng
  • Cao, Yirui
  • Piao, Yong

Abstract

Based on interprovincial panel data from 2014 to 2023, this paper systematically examines the impact of financial aggregation on regional economic growth and the intermediary mechanism of financial resource allocation. Research findings indicate that financial aggregation significantly promotes regional economic growth, and this conclusion remains valid under multiple robustness tests. Financial resource allocation plays a mediating role between financial aggregation and regional economic growth, meaning that financial aggregation indirectly enhances growth momentum by optimizing financial resource allocation. Additionally, the promotional effects of financial aggregation exhibit significant regional heterogeneity, being pronounced in eastern and central regions but not in western regions. The study's findings provide empirical evidence and policy implications for optimizing regional financial layout and promoting coordinated economic development.

Suggested Citation

  • Li, Yaxuan & Zhao, Jing & Wu, Zheng & Cao, Yirui & Piao, Yong, 2025. "Financial aggregation, financial resource allocation, and regional economic growth," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325019397
    DOI: 10.1016/j.frl.2025.108685
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    References listed on IDEAS

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