Financial Agglomeration and Hierarchical Urban Systems: A Study Based on Loan Balances of Cities
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| Title | Financial Agglomeration and Hierarchical Urban Systems: A Study Based on Loan Balances of Cities
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| Author | Liang Qi,Wang Ruyu,Wang Zhigao and Chen Jianlong |
| Organization | Sun Yat-sen Business School |
| Email | liangqi9@mail.sysu.edu.cn |
| Key Words | Financial spatial structures; hierarchical urban systems; factor misallocation effects |
| Abstract | Financial industries typically exhibit hierarchical spatial structures in modern economies. Based on the data of loan balances of cities and the number of permanent urban residents in China, using the core density estimation and regression analysis, we find that the hierarchical urban and financial structures essentially match each other, although the latter exhibits a higher degree of concentration. Moreover, a city’s capital endowment, profit prospect, technological efficiency, and population size encourage the concentration of financial capital, whereas the effects are countervailed by the misallocation between workers and enterprises. The optimization of urban hierarchical systems is the necessary condition for the optimization of financial spatial structures. |
| Serial Number | WP1222 |
| Time | 2017-09-12 |
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