Research Of The Industry Agglomeration’ Effect To Its Global Value Chain Position

The problem of the industry agglomeration’s effect to its global value chain position has become hot topic in academic field. In the past two decades, China’s industry agglomeration grew rapidly with the development of reform and opening-up. Especially the industry agglomeration of manufacturing has become the main power to promote the regional economic development. However, China’s manufacturing is still in the low position in the global value chain position according to the existing literatures. How to improve China’s manufacturing position in global value chain? Solving this problem scientifically is very importance to the theory and reality. So in order to propose feasible suggestion for improving the manufacturing’s position on global value chain, this paper regards China’s manufacturing as research object and explores the effect and mechanism of the industry agglomeration to its global value chain position.In this paper, author define the concept and border of research key words by teasing literature both at home and aboard and classify industrial agglomeration development pattern. According to the endogenous and exogenous development pattern to explain the basic theory of global value chain. Induct and deduct the mechanism about the industry agglomeration’s effect to its global value chain positionBefore testing its theory mechanism by empirical study, author use improved measurement method to calculate and analyze the industry agglomeration degree and its global value chain position. What’s more, this paper builds a multiple regression model and uses the ordinary least square、fixed effects model and random effects model for empirical testing. The empirical results show that the industry agglomeration has positive effect on the global value chain. In addition, exogenous industrial agglomeration has more important effect than the endogenous industrial agglomeration. Finally, based on the empirical conclusion, this paper put forward some suggestion according the present situation of Chinese economy.This article includes six parts. The first chapter is introduction, mainly expounds the selected topic background, research significance, research methods, the article structure, the difficulty and innovation; The second chapter is literature review, tease related theory about industry agglomeration and global value chain, summarize researches at home and aboard. The third chapter is theoretical analysis. At first define several keywords concept. Then based on the theory of scale economy and multinational company, analyze the mechanism between different kind of industrial agglomeration and global value chain according to different development model. Chapter four and five is empirical research, use θ index and KPWW method to calculate the degree of industry agglomeration and added value rate. Then use different regression method to test relationship between variables. Chapter six is conclusion and suggestion.