The interaction of the financial agglomeration and urbanization development in the western region of China

By establishing the comprehensive evaluation index of the financial agglomeration and urbanization development,this essay uses the factor analysis to find the main factors which could evaluate the financial agglomeration and urbanization development.According to the factor score,it calculates the comprehensive score to evaluate the financial agglomeration and urbanization development level.It is concluded that the development of the financial agglomeration and urbanization are interactive.In the end,it uses Granger causality analysis to verify the interactive development between financial agglomeration and urbanization with the error correction model.The results show that the financial agglomeration and urbanization development are the Granger reasons of each other.