Financial Agglomeration and Urban Economic Performance From the Angle of Spatial Spillover

Based on urban panel data from 2003 to 2011in China,we estimate a spatial Dubin model to examine the relationship between financial agglomeration and economic performance.Empirical evidence shows that a city's total factor productivity depends not only on local financial agglomeration but also on neighboring cities.The results are robust to three different spatial weight matrixes even after considering the spatial feedback effects.Further more,the geographic spillover effects of financial agglomeration exist only for a distance up to 110 or 120 km,quite limited in geographic scope.In this sense,distant cities in the same urban agglomeration,including Shanghai and Hangzhou,Nanjing,Shen yang and Dalian,Chongqing and Chengdu can play the role of regional financial center together.