A Factor Analysis on the Financial Industry Agglomeration of Beijing

Abstract

This paper describes the characteristics of financial industry clusters of Beijing and discuss the factors affecting those, using factor analysis to extract common factors from the hypothetical indicators that may affect the financial industry gathering. Research shows that Beijing's financial industry has a high local degree of specialization, and its degree of agglomeration shows a strong positive correlation with the "modernization factor" on behalf of indicators representing the degree of modernization of Beijing's per capita income, level of information and economic system, and "human capital factor" representing Beijing's human capital.