-Take Lujiazui Financial and Trade Zone in Pudong as an example.
Gu anqi
Department of Urban and Regional Economics, East China Normal University, Grade 05.
This paper first gives a brief introduction to industrial clusters, then analyzes the formation mechanism of financial industrial clusters in Lujiazui Financial and Trade Zone, and finally discusses the influence of financial industrial clusters in Lujiazui Financial and Trade Zone on regional development from several aspects.
Keywords: formation mechanism of financial industrial clusters, Lujiazui regional development
1. Concept of industrial cluster
Michael Porter (1990) pointed out that the key to the competitive advantage of a country or region in the world is the industrial competitive advantage, which comes from interrelated industrial clusters. Industrial cluster is a collection of interrelated companies and related institutions with similar geographical location. They are in the same place or related to a specific industrial field, and are linked together because of their complementarity and complementarity. Industrial clusters have the characteristics of specialization. Industrial clusters pay attention to observing and analyzing the criss-crossing industrial links within the cluster, revealing the phenomena and mechanisms of related industrial links and cooperation, so as to gain industrial competitive advantages. Related enterprises in industrial clusters exist in a specific industry (department), which may be not only that, but also adjacent to related supporting industries.
The financial industry always appears in the form of clusters, forming financial centers (Pandit et al, 200 1). Looking around the world, those financial industry clusters with strict organizational hierarchy, perfect network system and huge development scale often show strong and sustainable competitive advantages. In recent years, with the vigorous development of Shanghai's modern service industry, some embryonic forms of clusters have appeared in the central city, showing a rapid growth trend. This paper attempts to take Lujiazui Financial and Trade Zone as an example to analyze the formation mechanism of Shanghai financial industrial cluster and its influence on regional development.
2. The formation mechanism of financial industrial clusters
2. 1 power supply coefficient
Financial industrial clusters can be called the "reservoir" of professional labor, which can timely transport a large number of high-quality labor for the development of financial companies. This is the same reason that financial centers such as London, new york and Frankfurt can attract commercial banks and investment banks. Especially because the skills of the financial industry are largely completed by many parties (for example, the trading knowledge of the euro is realized under the supervision of more advanced traders), industrial agglomeration is a necessary condition for the development of many financial industries.
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Thirdly, the pace of innovation in the financial industry is accelerating, and the tacit knowledge in transactions is increasing, so transactions often need to be completed face to face. On the contrary, small financial companies, such as branches of financial companies and independent insurance companies, have simple business and do not need too much tacit knowledge and a large number of professional workers. Therefore, these institutions and individuals are often located outside the financial center.
On the other hand, the supply factor is the development of supporting industries in the financial industry. Because the financial industry needs the support of a large number of related industries, such as accounting, law, management consulting, actuarial industry, computer software and hardware, advertising and market research, talent recruitment, education, financial publishing and so on. The agglomeration of financial centers promotes the emergence and development of supporting industries, which in turn promotes the development of industrial clusters, that is, improving information flow, improving efficiency and increasing liquidity.
2.2 Demand factors
The most important demand factor is that being located in a financial center can improve the reputation and image of the company. Because the society has a sense of identity with the enterprises located in some financial centers, the enterprises in this region can be accepted by people, which is also an important reason for the concentration of some enterprise clusters. The second factor of demand is that industrial clusters can weaken information asymmetry, thus reducing adverse selection and moral hazard.
3. Lujiazui Financial and Trade Zone Financial Industry Cluster
3. 1 Definition of Lujiazui Financial and Trade Zone
Lujiazui Financial and Trade Zone is located between Huangpu River and Pudong Inner Ring Road, covering an area of 28 square kilometers. Across the river from the Bund, which was called "Far East Wall Street" in 1930s, it is the only state-level development zone named after "Finance and Trade" in China. At present, Lujiazui Financial and Trade Zone has become the financial and trade center with the largest economic flow and the most perfect service in China. Like new york's Manhattan, the City of London, Tokyo's Shinjuku Financial District and other international CBD areas, a modern service industry cluster with financial industry and producer services as its core has initially formed. The economic contribution value, economic aggregate and GDP of regional flow rank first in China and development zones.
International and domestic banks, insurance, securities, funds and finance companies are highly concentrated in Lujiazui Financial and Trade Zone, forming a huge financial market that can radiate to the Asia-Pacific region. With the move of China Pacific Insurance Group Corporation, Bank of Communications, Shanghai Branch of China Development Bank, Shanghai Regional Management Headquarters of Shanghai Pudong Development Bank, orient securities Co., Ltd. and other institutions, the financial agglomeration and radiation function of the financial and trade zone has been upgraded to a new level. There are 18 Chinese-funded banking institutions above the branch level in the financial and trade zone, mainly including Shanghai Branch of the Central Bank, Shanghai Branch of ICBC, Shanghai Branch of Bank of China, Shanghai Branch of China Construction Bank, Shanghai Regional Management Headquarters of Shanghai Pudong Development Bank, Shanghai Branch of Shenzhen Development Bank and Shanghai Branch of CDB. There are 19 Chinese and foreign insurance institutions above branches, mainly including Pacific, Tianan, Huatai, Taiping, Pacific Antai, Hong Zhong, China Reinsurance, China Insurance Kanglian, Jinsheng and Taikang. Securities institutions mainly include Shanghai Stock Exchange, Dongfang, China Everbright, Soochow, Shen Yin Wanguo, Minfa, Galaxy and other securities companies. There are 56 foreign-funded banking institutions, including 42 banks, 3 insurance companies/kloc-0 and 3 finance companies/kloc-0. The China headquarters of Citibank, Standard Chartered Bank and HSBC moved into the financial and trade zone. 29 foreign banks
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Approved to operate RMB business, and 24 foreign banks became "main reporting banks". Financial and Trade Zone has become the center of foreign banks' business in China. There are also many fund management companies and investment management companies such as Cathay Golden Eagle, Guo Fu, Penghua and Galaxy in the financial and trade zone. Chinese and foreign financial institutions have opened more than 160 business outlets in Lujiazui. Shanghai Stock Exchange Building, Shanghai Ship Building, China Merchants Building, HSBC Building, China Insurance Building and other high-rise buildings have concentrated most Chinese and foreign financial institutions in the financial and trade zone. Hong Kong Sun Hung Kai Property Company, Oriental Development Management Company, China Ping An Insurance Company, Shanghai Bank, Citigroup and other companies leased 22 plots of land, covering an area of 856,000 square meters, with a construction area of 65.438+7560 square meters and a contract value of 5.2 billion yuan.
3.2 Lujiazui financial industry cluster formation mechanism
The formation of Lujiazui financial industry cluster is the result of government planning. Mainly manifested as: form development as the guide, system innovation as the basis, emphasizing introduction and innovation, highlighting brand advantages. High starting point, rapid growth, obvious scale advantage and external transplantation.
As the core subject of Pudong's development and opening up and the key area of Shanghai CBD construction, the government has invested a lot of construction funds to develop Lujiazui Financial and Trade Zone, especially adopting the scheme of international design companies, optimizing the overall planning and layout of Lujiazui Financial and Trade Zone, building an information service platform and optimizing the business environment by improving the information facilities capacity of e-commerce centers. Intelligent senior commercial office buildings, supporting commercial and living service facilities and perfect transportation and communication facilities have been gradually built, which has created a relatively perfect platform and an effective space carrier for the formation and development of financial industry clusters.
The unique institutional advantage is the more important reason for the formation of Lujiazui financial industry cluster. Pudong is the economic leader of the Yangtze River Delta and the window to the outside world. The state and Shanghai have given strong support to Pudong's pioneering efforts in institutional innovation and opening-up, such as giving the service trade a functional policy of opening to the outside world, supporting the policy of attracting various financial institutions, Chinese and foreign funds and investment banks, and encouraging product innovation in factor markets. In terms of industrial policy orientation, it is clear that we should vigorously develop modern service industries such as finance, insurance and information services. These policy advantages are undoubtedly the institutional environment for the development of Lujiazui financial industry cluster.
At the same time, since the 1980s, there has been a global upsurge of international industrial transfer. A large number of labor-intensive manufacturing industries in developed countries moved to China, and developed into an important pillar of the southeast coastal economy in the 1990s, and China gradually became the factory of the world. With the development of international transfer of manufacturing industry, producer services supporting manufacturing industry worldwide have also increased their efforts to transfer to China. As a big city with perfect comprehensive service functions, Shanghai naturally becomes the first choice for the transfer of these producer services, and Pudong's perfect hardware facilities and unique institutional advantages undoubtedly have great attraction to producer services.
Through this specific environmental reconstruction and institutional arrangement, we will build a tangible space carrier and transplant a large number of people from outside.
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Financial services, and gradually establish a mechanism to attract the development of related enterprises. This is the formation mechanism of Lujiazui financial industry cluster, which is an exogenous cluster. Therefore, this means that Lujiazui financial and trade cluster should develop and grow. On the one hand, we must further integrate with the international community in terms of system, mechanism and talents, and further attract international multinational financial institutions, regional headquarters and other key enterprises. On the other hand, it is necessary to speed up the formation of local social network structure, actively cultivate localized service enterprises or localize the development of multinational service enterprises and their customers, and so on. At the same time, we should strengthen the cooperation among city governments, enterprises and intermediary organizations, actively promote the formation of resource sharing and cooperation mechanisms within the cluster, and promote the development of related derivative service clusters.
4. The role of industrial clusters in regional development
4. 1 Improve the efficiency of production and operation
Through spatial agglomeration and industrial organization optimization, financial industry cluster has agglomeration economy effect, scale economy effect and scope economy effect, and then presents the advantages of production and operation efficiency of financial industry in the cluster. The first is the reduction of transaction costs. The financial industry in the cluster can make use of public facilities such as telecommunication network and customer credit information system, and make use of geographical proximity to reduce the additional investment required for decentralized layout and save the transportation cost of materials and information flow; At the same time, with the help of the social network based on cooperation and trust among enterprises in the cluster, traders can easily reach a deal and perform the contract, which saves the time and cost of searching market information for enterprises and effectively reduces the transaction cost. Secondly, the efficiency of resource utilization. Cluster is a gathering place of technology, capital, talents and other resources, which is conducive to the financial industry to quickly and conveniently obtain the resources needed for its own development and promote the rapid growth of enterprises. Financial professionals in the cluster flow frequently, and the pricing of financial human capital is completely market-oriented, attracting financial elites from all over the world and even the world. The development of clusters and the guidance of the interests of division of labor and cooperation have prompted the financial industry to outsource some of its original services to other enterprises through the externalization or socialization of internal division of labor after comparing the internal production organization costs with the market transaction costs, so as to make faster use of social resources to expand the scale or reduce costs and give full play to the utility of resources.
4.2 is conducive to enhancing regional economic competitiveness.
Lujiazui has created five "national firsts": the number of financial and insurance institutions attracting Chinese and foreign investment, the paid-in capital per unit area of foreign financial institutions, the business fields and varieties of foreign banks, the total working capital of foreign trade banks, and the number of foreign banks with business tax exceeding 6,543,800 yuan. By the end of 2003, the total assets of foreign banks in Lujiazui Central District had exceeded US$ 20 billion, making it one of the emerging international capital centers in the Asia-Pacific region. The total assets of 62 foreign trade financial institutions reached 220 billion yuan, accounting for 57% of the total assets of foreign trade financial institutions nationwide. In 2005, the investment in fixed assets in the financial and trade zone, which mainly focuses on real estate development, was1/billion yuan, an increase of 1.8% over the previous year, accounting for 18.80% of the total investment in fixed assets in the new zone.
The radiation energy of factor market driven by cluster is enhanced. Securities, futures, property rights, diamonds, real estate, talents and other national and municipal factor markets are gathered in a financial and trade zone. Shanghai Futures Exchange has 265,438+05 members, and the total transaction volume in 2005 was 654.38+64 million yuan.
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Among them, the trading volume of metallic copper is nearly 654.38+0,000 billion yuan, which has become one of the three largest copper markets in the world, a barometer of global copper trading and a weather vane of price. There were 70 newly listed joint-stock companies in Shanghai Stock Exchange during the year, with a total of 765,438+05. In 2005, the securities transaction volume was 4.85 trillion yuan, an increase of 9.9% over the previous year. Shanghai Property Rights Exchange achieved a property rights transaction volume of110 billion yuan, and completed 3380 transactions of various enterprises, becoming the leader of property rights transactions in the Yangtze River Basin. Since the introduction of relevant policies in the second half of 2002, the trading volume of the diamond exchange has increased rapidly, with a total of 7.764 million carats of diamonds, with a trading volume of $654.38+$57 million. The tax revenue was 67 million yuan, an increase of seven times over the previous year.
4.3 Stimulate innovation ability
A large number of financial industries gather in a region, which not only strengthens the competition among them, but also produces the effect of mutual learning, making the comparative advantage based on resource endowment develop into the regional financial innovation advantage. The first is the competitive incentive of financial innovation. As a large number of competitors gather in the same area, the situation of "competing with each other" and "living next to competitors" (Li Xinchun, 200 1) has been formed, and the ruthless competition law has formed a strong pressure, which in turn has become a powerful driving force for innovation in most financial industries, forcing enterprises to accelerate the pace of financial innovation.
Second, the institutional support of financial innovation. The cultural atmosphere of encouraging innovation is an important aspect of cluster development. Competition, cooperation and cultural identity between different financial industries, between financial industries and non-financial industries, between financial industries and scientific research institutions, and among a large number of intermediaries in a cluster, as well as regional innovation systems, can quickly and conveniently provide relevant resources and various support conditions needed in financial innovation.
Third, it is the knowledge learning path of financial innovation. Contemporary financial innovation is essentially a process of creating, spreading and enjoying innovative financial knowledge, which is usually informal and implicit, that is, tacit knowledge, which cannot be easily separated from personal, social and regional backgrounds and is difficult to encode and spread through formal information channels. Financial industrial clusters provide a "cradle" and a way for this. The unique financial cultural atmosphere of financial industrial clusters provides the basis and conditions for the diffusion and dissemination of knowledge, especially tacit knowledge, among financial industries. The research shows that the "industrial atmosphere" of financial industrial clusters can support the imitation, digestion, absorption and rapid diffusion of innovation among enterprises; The existence of trust among enterprises in the cluster region makes the spread, digestion and absorption of innovative financial knowledge in the cluster region faster and faster. Through the integration, externalization and internalization of knowledge among cluster members, it is very beneficial to enjoy financial knowledge, create a "knowledge multiplier effect", accelerate the incubation and innovation of financial knowledge in the cluster region, and thus obtain the regional comparative advantage of financial innovation.
4.4 Establish a strong regional brand
The formation of Lujiazui financial service cluster is the result of government planning. Mainly manifested as: form development as the guide, system innovation as the basis, emphasizing the introduction of innovation, highlighting brand advantages, is conducive to the formation of good social effects. Through the concentration and coordination of financial marketing channels, the financial industry can concentrate its advertising power and use the group effect to form a "location brand".
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It has changed the situation that a single large enterprise is unwilling to invest too much because of the high advertising cost, and small and medium-sized enterprises are unable to advertise, thus eliminating economic externalities and benefiting every enterprise in the cluster. After the cluster forms a "location brand", it can use this huge brand value to monopolize sales in the form of monopoly and obtain vertical integration profits.
5. Summary
The formation of Lujiazui financial industry cluster is the result of government planning. Through this specific environmental reconstruction and institutional arrangement, we will build a tangible space carrier, transplant a large number of financial service enterprises from outside, and gradually establish a mechanism to continuously attract the development of related industries. Cluster improves the efficiency of production and operation, helps to enhance the regional economic competitiveness, stimulate enterprise and system innovation, form a strong regional brand, give play to economies of scale, maximize the use of resources, and promote the economic and social development of the whole region.
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