Exploring spatial impacts of transportation infrastructure on financial agglomeration: A moderating role of knowledge spillovers

With the rapid development of economy and ongoing financial reform in China, the phenomenon of financial agglomeration has aroused considerable attention. Currently, the determinants for financial agglomeration have been extensively studied. However, there remains a dearth of research exploring the relationship between transportation infrastructure and financial agglomeration from the perspective of external factors. To better understand the impact of transportation infrastructure on financial agglomeration, this study considers knowledge spillovers as a moderating factor. An empirical analysis was conducted using data collected in China from 2003 to 2022. The Spatial Durbin Model was employed to analyze the spatial impact of transportation infrastructure on financial agglomeration. Moreover, the moderating effect of knowledge spillovers and heterogeneity across geographical regions and urban scales was investigated. The results indicate that: (1) The development of transportation infrastructure has been evidenced to promote financial agglomeration. (2) Knowledge spillovers, as a moderating variable, weakens the driving effect of transportation infrastructure on financial agglomeration. (3) Transportation infrastructure enhances financial agglomeration in eastern and large-scale regions. Conversely, in western and small-scale regions, its impact is not significant. The findings shed light on the understanding of relationship between transportation infrastructure and financial agglomeration, and provide practical insights for policymakers.