Earth Sciences

| Peer-Reviewed |

A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations

Received: 31 May 2019    Accepted: 01 July 2019    Published: 17 July 2019
Views:       Downloads:

Share This Article

Abstract

The barrier-free flow of financial resources among nodes (regions) is not only conducive to more efficient use of financial resources, but also plays an important role in alleviating the contradiction between supply and demand of regional financial resources and promoting regional economic development. Based on the theory of spatial interaction among financial gradation cities, the paper takes the expansion of commercial banks in the Yangtze River Delta as an example, and constructs the flow network of financial resources between cities. Using the social network analysis (SNA) and Dagum Gini coefficient decomposition method, the paper analyzes a series of problems such as the development of the financial resources, flow path selection and flow coordination during the period 2008- 2014. The conclusions can be drawn as follows: (i) the flow density between prefecture-level cities is the largest, which grows rapidly as time goes by, followed by county-level cities to prefecture-level cities and the flow density between other sorts of cities is relatively small. (ii) The flows of financial resources between prefecture-level cities presents typical features of homogeneous diffusion, while the flows from prefecture-level cities to counties and other sorts of cities has the feature of conditional diffusion. Flow barriers between provincial level border holds the biggest effect, followed by the differences of economic and financial development level between the prefecture- level cities and county- level cities. Among the effects of condition, Provincial-level borders have the greatest impact, followed by urban economic gaps and financial development gaps. (iii) The degree of variance in financial resource inflows within county-level cities is the largest, and the inflow of financial resources in country-level cities has a tendency of Matthew effect. It shows that in the Yangtze River Delta, the trend of integration only exists between prefecture-level central cities. Moreover, the radiation effect of central cities on its financial hinterlands is not strong which should be further strengthened. Therefore, on the one hand, the integration policy at macro-level such as "regional financial coordination policy" and "regional trust system construction" in the urban agglomeration of this region should cover the country-level cities. On the other hand, country-level cities themselves (especially the backward countries) should also make great efforts to improving the current economic and financial environment by narrowing the gap between the cities to reach the goal of Planting Phoenix trees well to attract Phoenix.

DOI 10.11648/j.earth.20190803.18
Published in Earth Sciences (Volume 8, Issue 3, June 2019)
Page(s) 205-216
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Gradation Cities, Urban Agglomerations, Financial Resources Flow Network, Flow Coordination, Flow Density, The Yangtze River Delta

References
[1] Wei Qing. Research on the Flow of Financial Resources and Financial Integration in the Yangtze River Delta. Beijing: China Commercial Publishing House, 2011.
[2] Brouwer G D. Financial Integration in East Asia. Cambridge, UK: Cambridge University Press, 1999.
[3] Flood R P, Rose A K. Uncovered interest parity in crisis. IMF Staff Papers, 2002: 49 (2): 252-266.
[4] Cheung Y W, Chinn M D, Fujii E. The Chinese economies in global context: The integration process and its determinants. Journal of the Japanese and International Economies, 2006, 20 (1): 128-153.
[5] Akram Q F, Rime D, Sarno L. Does the law of one price hold in international financial markets? Evidence from tick data. Journal of Banking & Finance, 2009, 33(10): 1741-1754.
[6] Yu I W, Fung K P, Tam C S. Assessing financial market integration in Asia- equity markets. Journal of Banking & Finance, 2010, 34 (12): 2874-2885.
[7] Feldstein M, Horioka C. Domestic saving and international capital flows. Economic Journal, 1980, 90 (6): 314-329.
[8] Le H G. Financial openness and financial integration. In: Asia Pacific School of Economics and Management Working Paper, 2000: 1-4.
[9] Isaksson A. Financial liberalisation, foreign aid and capital mobility: Evidence from 90 developing countries. Journal of International Financial Markets, Institutions and Money, 2001, 11 (3): 309-338.
[10] Kim H, Oh K Y, Jeong C W. Panel cointegration results on international capital mobility in Asian economies. Journal of International Money and Finance, 2005, 24 (1): 71-82.
[11] Guillaumin C. Financial integration in East Asia: Evidence from panel unit root and panel co-integration tests. Journal of Asian Econoics, 2009, 20 (3): 314-326.
[12] Hou Yunhui, Liu Hong. Quantitative analysis to the city agglomeration structure based on social network: A case of capital exchange network of the Yangtze River Delta. Complex System and Complexity Science, 2006, 2 (6): 35-42.
[13] Hu Kai, An empirical study on the scale of interprovincial capital mobility in China. Economic Geography, 2011, 31 (1): 90-96.
[14] Bai Qinxian, Ding Zhijie. Discuss the Sustainable development of Finance. Studies of International Finance, 1998, (5): 28-32.
[15] Ji Feifei, Chen Wen. Distribution pattern and expansion mechanism of financial institution network in the Yangtze River Delta. Progress in Geography, 2014, 33 (9): 1241-1251.
[16] Bagler G. Analysis of the airport network of India as a complex weighted network. Physica A, 2008, 387 (12): 2972-2980.
[17] Ter Wal A L J, Boschma R A. Applying social network analysis in economic geography: Framing some key analytic issues. The Annals of Regional Science, 2009, 43 (3): 739-756.
[18] Li Xiang. Research on the Yangtze River Delta urban agglomeration network structure based on social network analysis. Urban Studies, 2011, 18 (12): 80-85.
[19] Zhen Feng, Wang Bo, Chen Yingxue. China's city network characteristics based on social network space: An empirical analysis of sina micro-blog. Acta Geographica Sinica, 2012, 67 (8): 1031-1043.
[20] Wang Yu, Chen Wen, Yuan Feng. Human mobility and evolution based on social network: An empirical analysis of Yangtze River Delta. Geographical Research, 2014, 33 (2): 385-400.
[21] Gu Chaolin, Pang Haifeng. Study on spatial relations of Chinese urban system: Gravity model approach. Geographical Research, 2008, 27 (1): 1-12.
[22] Leng Bingrong, Yang Yongchun, Li Yingjie, et al. Spatial characteristics and complex analysis: A perspective from basic activities of urban networks in China. Acta Geographica Sinica, 2011, 66 (2): 199-211.
[23] Zhang Fengchao. The Research of Financial Area System: An Explanation about Financial Integration. Beijing: People's Publishing House, 2006.
[24] Lin Yifu, Sun Xifang, Jiang Ye. Toward A theory of optimal financial structure in economic development. Economic Research Journal, 2009, (8): 4-17.
[25] Haggett P, Chorley R J. Network Analysis in Geography. London: Edward Arnold, 1969.
[26] Ullman E L. Human geography and area research. Annals of the Association of American Geographers, 1953, 43 (1): 54-66.
[27] Hagestrand T. Innovation as A Spatial Process. Chicago: Chicago University of Press, 1967.
[28] Lu Jun. Spatial Movement of External Part of City and Regional Economy. Beijing: China City Press, 2011.
[29] Ji Feifei, Chen Wen, Wei Yehua, et al. Changing financial flow patterns and driving mechanisms of financial flows under the integration of the Yangtze River Delta: An analysis of the financial transaction data of listed companies. Acta Geographical Sinica, 2014, 69 (6): 823-837.
[30] Li Xiaojian. Spatial system of urban agglomeration in district development. Economic Geography, 2006, 26 (5): 721-725.
[31] Zhou L, Hu Angang. Differences of regional financial development disparity in China (1978-1999). Journal of Tsinghua University: Philosophy and Social Sciences, 2002, 17 (2): 60-74.
[32] Liu Jun. Lectures on whole network approach: A Practical Guide to UCINET. Shanghai: Truth and Wisdom Press, 2009.
[33] Dagum C. A New approach to the decomposition of the Gini income inequality ratio. Empirical Economics, 1997, 22 (4): 515-531.
[34] Montiel P, Reinhart C M. Do capital controls and macroeconomic policies influence the volume and composition of capital flows? Evidence from the 1990s. Journal of International Money and Finance, 1999, 18 (4): 619-635.
Author Information
  • School of Public Administration, Guangdong University of Foreign Studies, Guangzhou, China

  • School of Economics and Trade, Guangdong University of Foreign Studies, Guangzhou, China

  • School of Mathematics and Statistics, Guangdong University of Foreign Studies, Guangzhou, China

Cite This Article
  • APA Style

    Mingzhu Li, Rongxin Xu, Di Zhou. (2019). A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations. Earth Sciences, 8(3), 205-216. https://doi.org/10.11648/j.earth.20190803.18

    Copy | Download

    ACS Style

    Mingzhu Li; Rongxin Xu; Di Zhou. A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations. Earth Sci. 2019, 8(3), 205-216. doi: 10.11648/j.earth.20190803.18

    Copy | Download

    AMA Style

    Mingzhu Li, Rongxin Xu, Di Zhou. A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations. Earth Sci. 2019;8(3):205-216. doi: 10.11648/j.earth.20190803.18

    Copy | Download

  • @article{10.11648/j.earth.20190803.18,
      author = {Mingzhu Li and Rongxin Xu and Di Zhou},
      title = {A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations},
      journal = {Earth Sciences},
      volume = {8},
      number = {3},
      pages = {205-216},
      doi = {10.11648/j.earth.20190803.18},
      url = {https://doi.org/10.11648/j.earth.20190803.18},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.earth.20190803.18},
      abstract = {The barrier-free flow of financial resources among nodes (regions) is not only conducive to more efficient use of financial resources, but also plays an important role in alleviating the contradiction between supply and demand of regional financial resources and promoting regional economic development. Based on the theory of spatial interaction among financial gradation cities, the paper takes the expansion of commercial banks in the Yangtze River Delta as an example, and constructs the flow network of financial resources between cities. Using the social network analysis (SNA) and Dagum Gini coefficient decomposition method, the paper analyzes a series of problems such as the development of the financial resources, flow path selection and flow coordination during the period 2008- 2014. The conclusions can be drawn as follows: (i) the flow density between prefecture-level cities is the largest, which grows rapidly as time goes by, followed by county-level cities to prefecture-level cities and the flow density between other sorts of cities is relatively small. (ii) The flows of financial resources between prefecture-level cities presents typical features of homogeneous diffusion, while the flows from prefecture-level cities to counties and other sorts of cities has the feature of conditional diffusion. Flow barriers between provincial level border holds the biggest effect, followed by the differences of economic and financial development level between the prefecture- level cities and county- level cities. Among the effects of condition, Provincial-level borders have the greatest impact, followed by urban economic gaps and financial development gaps. (iii) The degree of variance in financial resource inflows within county-level cities is the largest, and the inflow of financial resources in country-level cities has a tendency of Matthew effect. It shows that in the Yangtze River Delta, the trend of integration only exists between prefecture-level central cities. Moreover, the radiation effect of central cities on its financial hinterlands is not strong which should be further strengthened. Therefore, on the one hand, the integration policy at macro-level such as "regional financial coordination policy" and "regional trust system construction" in the urban agglomeration of this region should cover the country-level cities. On the other hand, country-level cities themselves (especially the backward countries) should also make great efforts to improving the current economic and financial environment by narrowing the gap between the cities to reach the goal of Planting Phoenix trees well to attract Phoenix.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - A Study in the Flow of Financial Resources in the Yangtze River Delta from the Perspective of Financial Gradation Cities in Urban Agglomerations
    AU  - Mingzhu Li
    AU  - Rongxin Xu
    AU  - Di Zhou
    Y1  - 2019/07/17
    PY  - 2019
    N1  - https://doi.org/10.11648/j.earth.20190803.18
    DO  - 10.11648/j.earth.20190803.18
    T2  - Earth Sciences
    JF  - Earth Sciences
    JO  - Earth Sciences
    SP  - 205
    EP  - 216
    PB  - Science Publishing Group
    SN  - 2328-5982
    UR  - https://doi.org/10.11648/j.earth.20190803.18
    AB  - The barrier-free flow of financial resources among nodes (regions) is not only conducive to more efficient use of financial resources, but also plays an important role in alleviating the contradiction between supply and demand of regional financial resources and promoting regional economic development. Based on the theory of spatial interaction among financial gradation cities, the paper takes the expansion of commercial banks in the Yangtze River Delta as an example, and constructs the flow network of financial resources between cities. Using the social network analysis (SNA) and Dagum Gini coefficient decomposition method, the paper analyzes a series of problems such as the development of the financial resources, flow path selection and flow coordination during the period 2008- 2014. The conclusions can be drawn as follows: (i) the flow density between prefecture-level cities is the largest, which grows rapidly as time goes by, followed by county-level cities to prefecture-level cities and the flow density between other sorts of cities is relatively small. (ii) The flows of financial resources between prefecture-level cities presents typical features of homogeneous diffusion, while the flows from prefecture-level cities to counties and other sorts of cities has the feature of conditional diffusion. Flow barriers between provincial level border holds the biggest effect, followed by the differences of economic and financial development level between the prefecture- level cities and county- level cities. Among the effects of condition, Provincial-level borders have the greatest impact, followed by urban economic gaps and financial development gaps. (iii) The degree of variance in financial resource inflows within county-level cities is the largest, and the inflow of financial resources in country-level cities has a tendency of Matthew effect. It shows that in the Yangtze River Delta, the trend of integration only exists between prefecture-level central cities. Moreover, the radiation effect of central cities on its financial hinterlands is not strong which should be further strengthened. Therefore, on the one hand, the integration policy at macro-level such as "regional financial coordination policy" and "regional trust system construction" in the urban agglomeration of this region should cover the country-level cities. On the other hand, country-level cities themselves (especially the backward countries) should also make great efforts to improving the current economic and financial environment by narrowing the gap between the cities to reach the goal of Planting Phoenix trees well to attract Phoenix.
    VL  - 8
    IS  - 3
    ER  - 

    Copy | Download

  • Sections