Financial Development and Industrial Agglomeration: A Case of Districts in Beijing with Panel Data Analysis

摘要

Industrial agglomeration promotes the economic development in Beijing, which relies largely on the support from financial sector. In hope of analyzing the different impacts of indirect financing and direct financing on the process of industrial agglomeration, this paper sampled all 16 districts (counties) under the jurisdiction of Beijing, gathering the panel data from 2005 to 2012. Other possible explanatory variables such as local fiscal expenditure, FDI, imports & exports, fixed asset investment are also brought into consideration. The results show that direct/indirect financing as well as FDI create a positive impact to industrial agglomeration in the central six districts (the Core 6), in which direct financing is more influential than the indirect one. However, industrial agglomeration in the other 10 districts (the Non-core 10) are largely be explained by import and export instead of financing.