Open AccessAnalysis on the Spatial-Temporal Dynamics of Financial Agglomeration with Markov Chain Approach in China
Author(s) -
Weimin Chen,
Huifang Zeng,
Liu You-jin
Publication year - 2014
Publication title -
mathematical problems in engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.262
H-Index - 62
eISSN - 1026-7077
pISSN - 1024-123X
DOI - 10.1155/2014/561784
Subject(s) - economies of agglomeration , markov chain , convergence (economics) , china , divergence (linguistics) , econometrics , construct (python library) , markov process , economic geography , exploit , finance , economics , financial economics , geography , computer science , macroeconomics , mathematics , economic growth , statistics , linguistics , philosophy , computer security , archaeology , programming language
The standard approach to studying financial industrial agglomeration is to construct measures of the degree of agglomeration within financial industry. But such measures often fail to exploit the convergence or divergence of financial agglomeration. In this paper, we apply Markov chain approach to diagnose the convergence of financial agglomeration in China based on the location quotient coefficients across the provincial regions over 1993–2011. The estimation of Markov transition probability matrix offers more detailed insights into the mechanics of financial agglomeration evolution process in China during the research period. The results show that the spatial evolution of financial agglomeration changes faster in the period of 2003–2011 than that in the period of 1993–2002. Furthermore, there exists a very uneven financial development patterns, but there is regional convergence for financial agglomeration in China
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