How agglomeration in the financial services industry influences economic growth: Evidence from Chinese cities
This paper empirically tests the effect of financial knowledge spillovers on agglomeration in China's financial services industry and examines the external effects on cities' economies. The authors apply hierarchical linear modeling to examine a data set that comprises 276 Chinese cities and draw the following conclusions. Firstly, they find that agglomeration in the financial services industry and the Jacobs spillovers of industry diversification both promote financial knowledge spillovers in terms of industry specialization. Secondly, agglomeration in this studied industry has a significant positive influence on a city's economic growth, while financial knowledge spillovers have a significant but negative effect on a city's economic growth. Thirdly, the tendency towards agglomeration in the financial services industry in a few major cities is clear and the clustering significantly influences cities' boundaries. Finally, China's financial services industry is limited by a serious degree of regulation and is dominated by the main banking institutions.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wen, Mei, 2004. "Relocation and agglomeration of Chinese industry," Journal of Development Economics, Elsevier, vol. 73(1), pages 329-347, February.
- Andersson, Martin & Lööf, Hans, 2009.
"Agglomeration and Productivity - evidence from firm-level data,"
Working Paper Series in Economics and Institutions of Innovation
170, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Martin Andersson & Hans Lööf, 2011. "Agglomeration and productivity: evidence from firm-level data," The Annals of Regional Science, Springer, vol. 46(3), pages 601-620, June.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992.
"Growth in Cities,"
3451309, Harvard University Department of Economics.
- de Lucio, Juan J. & Herce, Jose A. & Goicolea, Ana, 2002. "The effects of externalities on productivity growth in Spanish industry," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 241-258, March.
- Chong-En Bai & Yingjuan Du & Zhigang Tao & Sarah Y. Tong, 2003.
"Local Protectionism and Regional Specialization: Evidence from China’s Industries,"
William Davidson Institute Working Papers Series
2003-565, William Davidson Institute at the University of Michigan.
- Bai, Chong-En & Du, Yingjuan & Tao, Zhigang & Tong, Sarah Y., 2004. "Local protectionism and regional specialization: evidence from China's industries," Journal of International Economics, Elsevier, vol. 63(2), pages 397-417, July.
- Aydogan, Neslihan & Lyon, Thomas P., 2004.
"Spatial proximity and complementarities in the trading of tacit knowledge,"
International Journal of Industrial Organization,
Elsevier, vol. 22(8-9), pages 1115-1135, November.
- Neslihan Aydogan & Thomas P. Lyon, 2004. "Spatial Proximity and Complementarities in the Trading of Tacit Knowledge," Microeconomics 0404004, EconWPA.
- Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
- Audretsch, David B & Feldman, Maryann P, 1998.
"Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition,"
CEPR Discussion Papers
1980, C.E.P.R. Discussion Papers.
- Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
- Gehrig, Thomas, 1998. "Cities and the Geography of Financial Centres," CEPR Discussion Papers 1894, C.E.P.R. Discussion Papers.
- Forni, Mario & Paba, Sergio, 2002. "Spillovers and the Growth of Local Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 151-71, June.
- Rousseau, Peter L. & Sylla, Richard, 2005.
"Emerging financial markets and early US growth,"
Explorations in Economic History,
Elsevier, vol. 42(1), pages 1-26, January.
- Peter L. Rousseau & Richard Sylla, 2000. "Emerging Financial Markets and Early U.S. Growth," Vanderbilt University Department of Economics Working Papers 0015, Vanderbilt University Department of Economics.
- Peter L. Rousseau & Richard Sylla, 1999. "Emerging Financial Markets and Early U.S. Growth," NBER Working Papers 7448, National Bureau of Economic Research, Inc.
- Peter L. Rousseau & Richard Sylla, 2000. "Emerging Financial Markets and Early U.S. Growth," Econometric Society World Congress 2000 Contributed Papers 1254, Econometric Society.
- van Soest, D.P. & Gerking, S.D. & van Oort, F.G., 2002. "Knowledge Externalities, Agglomeration Economies, and Employment Growth in Dutch Cities," Discussion Paper 2002-41, Tilburg University, Center for Economic Research.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- King, Robert G. & Levine, Ross, 1993.
"Finance and growth : Schumpeter might be right,"
Policy Research Working Paper Series
1083, The World Bank.
- Lu, Jiangyong & Tao, Zhigang, 2007.
"Trends and Determinants of China’s Industrial Agglomeration,"
6597, University Library of Munich, Germany.
- Lu, Jiangyong & Tao, Zhigang, 2009. "Trends and determinants of China's industrial agglomeration," Journal of Urban Economics, Elsevier, vol. 65(2), pages 167-180, March.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
- Giulio Cainelli & Riccardo Leoncini, 1999. "Externalities and long-term local industrial development. Some empirical evidence from Italy," Revue d'Économie Industrielle, Programme National Persée, vol. 90(1), pages 25-39.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:20146. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.