The Order Of Spatial Evolution Of Enterprises In The Process Of Industrialization Of Traditional Agricultural Area

Traditional agricultural area(TAA) refers to the area having the following economic and social characteristics:a long history of agriculture,an industrial structure with large proportion of agriculture,lack of minable natural resources,a high density of population with abundance surplus labor force,lack of capital and a relatively slow development of economy and society.Industrialization is one of the most important power to force social conversion of TAA from traditional agriculture to modern industry.Developed country's experience in industrialization is the unification of quantity expansion and spatial concentration, but China's rural industry shows a remarkable separate distribution within rapid development,which is a contradiction between quantity expansion and spatial concentration to some extent.If the village-location and separate distribution of rural industry of littoral area at the beginning of China's reform and opening was the rational choice of peasants and local government restricted by impersonal institution and the path-depend after original choice,why does the phenomenon of separate distribution exist ten years later,in which China's industry structure,the development of market system,and the whole function of economy and society has transformed deeply.In this paper,I think an economic phenomenon last for 30 years must be based on the fact of economy and society profoundly.Departed from the restrict condition the entrepreneur faced,people can explain the separate distribution of industry in TAA and forecast the trend of spatial evolution rationally.Therefore,the research object of this paper is restricted within the endogenetic enterprise of TAA.Departed from the entrepreneurs of TAA and the restrict condition they faced,this paper investigates the micro-mechanism of the happening of village-location and separate distribution in TAA,founds a logic framework to explain evolution trend of enterprise in TAA from separate distribution to spatial concentration,and certificates with typical cases.The findings of this paper show as follows:Firstly,village-location of enterprise in TAA is a rational choice of the entrepreneur,who is restricted by the lack of capital,technology and management experience.The entrepreneur of endogenetic enterprise in TAA comes from local peasants.At initial stages they were faced with great venture for lack of technology and management experience.Through reducing the scale of investment,they are capable of obtaining the opportunity to venture.Natural village is the most familiar environment of the entrepreneur of TAA,in which they were able to save initial investment from low price of ground,less expenditure of workshop and equipment, less expenditure of enrollment and tax,and obtaining informal financing.Secondly,village-location behavior of TAA is a maximizing behavior used actual factors of product reasonably,and separate distribution is a stable equilibrium relatively.Village-location behavior conduce to the entrepreneur of TAA have the opportunity to use their factors for industrial production,which was able to improve the efficiency of the use of the factors of product.Moreover,under the condition of lack of capital,technology and management experience they were able to obtain the chance to engage in industrial product none but village location.Thirdly,the village-location trend of industrial enterprise in TAA is strengthened by cumulated investment and the advantage of industrial clusters brought by learning and imitating mechanism.On the one hand,the expansion of endogenetic enterprise in TAA depended mainly on slow accumulation of itself.With the adding of investment, the unmovable assets in initial place became more and more,which strengthen initial village-location behavior continually.On the other hand,the entrepreneurial behavior of TAA is an activity with simple technology,small investment,low threshold,which is imitated easily.Moreover,the advantage of village-enterprise is common advantage hold by everyone of village.With the demonstration of success enterprise the peasant of village imitate one after another and succeed,which is help to improve industrial scale of the area and produce some agglomeration advantage,and initial village-location behavior was strengthened by the agglomeration advantage.Fourthly,for the strengthening of village-location tendency and the barrier of free movement of population and migration,industries in TAA have a lower level of spatial agglomeration,industrial infrastructure and urbanization,which is not conducive to the transformation and development of the enterprise.Under the mechanism of individual farmer's attempt and many farmers' imitation,the industrial enterprise in TAA form a certain amount of agglomeration advantage,but the agglomeration is a relative concentration in the area of one or several adjacent villages,which is a low level of spatial concentration.Moreover,the lower level of spatial concentration of industries resulted in a lower level of industrial infrastructure in TAA.The smaller scale of population led to a lower level of living infrastructure in TAA,and urbanization are far behind industrialization.With the expansion of scale,the enterprise faces the pressure and demand of technology-upgrading and management-restructuring,but the lower level of infrastructure and the lower level of urbanization in TAA can not provide effective support,resulting in the increase of production and management costs.In other words,the factor that influences the concentrating and upgrading of industries in TAA is not only the lag of industrial infrastructure,but also includes population concentration and the improvement of the level of urbanization.Fifthly,the scale of enterprise,the level of industrial infrastructure and living infrastructure are three important factors influenced the tendency of space evolution of industrial enterprise in TAA.The scale of enterprise and the changes of cost referring to location is the internal power of space evolution of enterprise.Where the enterprise concentrates on is decided by the level of industrial infrastructure and living infrastructure.Lastly,the industrial development in TAA will be a long-term process of the coexistence of decentralization and concentration.On the one hand,the enterprise tends to village-location and separate distribution is a rational choice of the entrepreneur of TAA in the real condition,and the village-location entrepreneurial activity is reasonable to maximize the use of product factors.So the activities is a relatively stable equilibrium,and likely to continue for quite a long time;On the other hand,the expansion of enterprise scale,the change of external environment and economic factors will influence the initial balance,and promote the trend to spatial concentration,but from quantitative to qualitative change also requires a relatively long period of time.Therefore,in the process of industrial development in TAA,the space will be a long-term coexistence of decentralization and concentration.Local governments should respect the interests of the enterprise when they set down the policies to promote industrial concentration.Small-scale enterprise preferred village-location and the potential small-scale entrepreneurial activity,should be allowed to select their preferred space in order to stimulate entrepreneurial enthusiasm, to maintain the vitality of industrial development in TAA,and to concentrate their savings for spatial agglomeration in future.For larger-scale enterprises,conform to the requirement of higher level of infrastructure and higher level of urbanization,should encourage and support their spatial agglomeration,to improve the overall quality and effectiveness of industries in TAA.This paper contributes to current research in several ways.First,village-location behaviour of industrial enterprise in TAA is a rational choice of the entrepreneur under the constraint of the lack of capital,technology,and management experience,which is a maximizing activity with a rational use of product factors.Second,in TAA,not all enterprises are necessary to concentrate spatially,but positively correlated with the scale of enterprise.Third,the industrial development of TAA will be a long-term process of the coexistence of decentralization and concentration.Fourth,spatial concentration of industrial enterprise in TAA is not only a higher level of industrial infrastructure,but also closely related to local living infrastructure and the improvement of the level of urbanization. The paper consists of seven chapters.Chapter 1 introduces the background,study issues and research methods based on the defining of core concept,and shows the study's procedures and systematic framework.Chapter 2 is the part of literature review which reviews and comments the theoretical basis and research results related,and shows the theoretical starting point of this paper.Chapter 3 looks for the micro-site basis of the tendency of industrial enterprises' village-location in TAA.Through liberalizating the "homogeneous people" implicit assumption of classic location theory, this chapter analyses the decision-making capacity of entrepreneur and the real constraints of the lack of capital,technical and management experience they faced,and draws a logical conclusion of "village-location of industrial enterprise in TAA is a rational choice of entrepreneur to control investment scale,obtain the opportunity of venture and reduce the risk".Chapter 4 clarifies the self-reinforcing of the tendency of enterprise's village-location in TAA,through analysing the accumulated investment pattern and the form of the advantage of industrial clusters.Chapter 5 studies the futural trend of space evolution of industrial enterprise in TAA.Through establishing the cost function,this chapter analyses the influent factors of space evolution of industrial enterprise in TAA,and predicts the trend of it from the micro and macro level.Chapter 6 is the empirical analysis,which verifies the logic framework brought in this paper by typical cases that the phenomenon of village-location and separate-distribution produces,strengthens and evolves.Chapter 7 summarizes overall conclusions and explains the study's contribution and innovation points in theory and practice aspects,identifies the limitation of the study and provides meaningful pathways for future research.