Financial Deepening, New Urbanization and Highquality Economic Development -- Empirical Analysis Based on Spatial Durbin Model

Abstract

Based on the panel data of 31 provinces and cities in China from 2011 to 2020, this paper uses the entropy method to measure the comprehensive indicators of high-quality economic development in 31 provinces and cities in China, builds a theoretical analysis framework through the new economic growth theory and new geographic economics, and introduces Spatial Spillover Effect to the traditional regression model, all of which helps explore the impact of financial deepening, new urbanization (industry, population, space) and their interaction terms on high-quality economic development. The results show that the high-quality development level of regional economy is rising year by year and the spatial gap is expanding. The high-quality economic development presents the characteristics of spatial agglomeration, and the local autocorrelation shows the characteristics of HH agglomeration and LL agglomeration. Financial deepening, industrial urbanization and spatial urbanization have significantly promoted the high-quality development of regional economy, among which the industrial urbanization contribute most. Financial deepening, industrial urbanization and spatial urbanization have Spillover effects in space and the coefficients are negative, which inhibits the high-quality economic development in other provinces. The indirect effect coefficients of the interaction term between financial deepening and industrial urbanization and spatial urbanization are positive, indicating that the interaction can promote high-quality economic development.