The economics impact of financial integration: a case of Chengdu-Chongqing economic circle

Abstract

Finance is the general hub of modern market economy operation and plays a non-substitutable important position in economic progress. The fact of financial integration in promoting the economy has been confirmed in some places, but for the Chengdu-Chongqing Economic Circle, there is still little research for this "new topic", this field of research is still waiting for people to explore. This paper firstly combs the relevant theories of financial integration. On this basis, the sixteen cities that constitute the Chengdu-Chongqing Economic Circle are selected as the research areas. Financial integration is set as the main explanatory variable, and the GDP is chosen to be the main explained variable, then we collected and established the panel data for 2010 to 2019. By processing and testing the data, this paper constructs a fixed-effect model and spatial regression for analysis. The results show that the development of financial integration can promote economic development in Chengdu-Chongqing Economic Circle.