Spatial Spillover and the Club Convergence of Financial Development: A Case Study of the Yangtze River Delta

Abstract

Abstract:

This paper introduces the Extended Distribution Dynamics model into the study of club convergence of financial development, and analyses the spatial and temporal patterns of club convergence of financial development of 72 cities and counties in Yangtze River Delta city cluster from 2003 to 2013 based on the extended Markov chain model and spatial Markov chain model. The study finds:The relative position of the four kinds of clubs in the whole distribution of financial development level is relatively stable, which will gradually ease slightly over time, but it is still evident for the high-level club and the low-level club. This means that there is a club convergence phenomenon for the financial development in Yangtze River Delta urban agglomeration. The neighboring regions with different financial development level have significant influence on the financial development in the local area. At the same time, the spatial distribution characteristic of financial development level in the urban agglomeration in Yangtze River Delta show "High-high concentration" and "low-low concentration" which is more and more obvious. This gives a spatial explanation of "convergence characteristics" of the finan-cial development level in the Yangtze River Delta region. Namely, the convergence characteristics of financial development in the Yangtze River Delta cities are gradually changing from "club convergence" to "club space convergence". Finally, this paper puts for-ward some policy recommendations about how to promote the coordinated development of urban agglomeration in Yangtze River Delta.

Key words: financial development, club convergence, Markov chain model

Zhou Di, Zhong Shaojun. Spatial Spillover and the Club Convergence of Financial Development: A Case Study of the Yangtze River Delta[J]. , 2018, 30(9): 72-81.

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