The Impact of Financial Agglomeration on the Real Economy

This paper investigates the impact of financial agglomeration on China's real economy, especially during the critical transition of the 14th Five-Year Plan period. Drawing on theories of economic growth and industrial agglomeration, it explores how financial concentration enhances resource allocation efficiency and generates scale and spillover effects. Using panel data from 2007 to 2024 and classifying finance into banking, insurance, and securities, the study finds that financial agglomeration—especially in banking—significantly promotes real economic development. Through static panel regression analysis, the results highlight the positive role of financial clustering in supporting high-quality economic growth, offering insights and policy recommendations for aligning financial development with the needs of the real economy.