Industrial Agglomeration and Household Financial Risk Investment

The regional pattern of industrial agglomeration exerts a critical influence on the economic well-being of local households, thereby shaping their financial decision-making behavior. Drawing on data from the China Household Finance Survey (CHFS) spanning 2013—2019, this paper examines the impact of industrial agglomeration on household financial investment decisions by integrating household location, employment industry, and investment behavior. The results indicate that households employed in locally agglomerated industries are more likely to invest in risky assets. Heterogeneity analysis further reveals that this effect is more pronounced among households facing lower labor risks, those employed in the service sector, and those residing in urban areas. Mechanism analysis suggests that industrial agglomeration operates through enhancing income stability, improving human capital, and increasing credit availability. This study extends the literature on the influence of local industrial structure on household financial decisions and provides empirical evidence and policy implications for optimizing industrial layout and fostering regional financial market development.