Industry Agglomeration, Industry Dispersal And Urban Development

Urbanization is one of prominent characteristics of modernization. About 2/3 of GDP and the tax revenue comes from the city, 90% of scientific research is concentrated in the city in our country. The economical development relies on the urbanized development. At the same time, urbanization is also the world universal tendency and the tidal current, since the 20th century and is considered as remarkable social economy phenomena.Followed the Chinese urbanization development, the theorists have been yielding the quite substantial result to the urbanized question discussion. At the same time, the world urbanization develops rapidly. Some original conclusions on urbanization are already proven not suitable to the reality. As for Chinese urbanization, the academic circles have not achieved the mutual recognition on some keys question until now.Based on the above situation, the author believes that, in the new historical condition, it is extremely essential to reexamines the urbanization theory and further analyzes reality of new trends of urbanization. Profits from the new economic geography, this paper has explained the city scale and the city three-dimensional system evolution rule with industry agglomeration and dispersal in urbanization. The conclusion is that the city scale effect comes from the industrial spontaneous agglomeration, and the city scale upper limit is decided in the critical point of industrial agglomeration and dispersal. This paper gives the mathematical expression of this point. Embarks from this mathematical expression, considering the different price index effect and internal market effect, this paper also explains the mechanism of the city three-dimensional system formation: Namely when the city scale effect achieved the critical point, according to the price index effect and internal market effect, those industry with low effect spread. This leads the city proliferation and a hierarchical urban system eventually formed. The above general conclusion may explain Chinese urbanization as well. Considering the special historical period of "from planned economy to market economy reform" in China, this paper alsoanalyzes the barrier factor in industrial agglomeration and dispersal. It points out that the government should eliminate these barrier factors in urbanization. The government should not intervene urbanization with administrative method rigidity. Besides introduction, this paper has seven chapters.Chapter one introduce the world urbanization advancement tendency since 1950, in particular the city scale and the city three-dimensional system structure change situation in the world. It is obvious that the generally expansion of city scale and complication of city three-dimensional system in the global scope has emerged. It prominently displayed in the quantity rising of big city or the super city in the world. The urban system has appears and holds vital role in the world economy.In the second and third chapter the author construct theoretical model of urbanization. In this part we explain the relation between industry agglomeration and urbanization.In summary, the research on urbanization can be divided into three stages: the opinion on small cities; the opinion on world urbanization; the opinion on agglomeration benefit in cities. On the question of city scale, the domestic scholar has not achieved the mutual recognition until now. The research abroad is not satisfactory too. It does not actually explain the resource of various costs and the benefit curve. On the foundation of new economic geography model, this chapter successfully explained the city reasonable scale question.Chapter three explains the formation of cities cluster with the aid of the mathematical model. This chapter completely explained the urban cluster formation mechanism. This explanation may vividly describe as follows: Suppose there existence an uniform archery target space originally. Stemming from the smallest transportation cost consideration, many single merchants can gather gradually together in some center. With more and more industries concentrated, the city will be formed. As a result of the price index effect function, real wages level rises unceasingly in the city. This will attract the more and more worker to come to get employed. As for the merchant, because of accessing to the city big market, the transportation cost will be greatly saved. However, the cost on labor force cost rise. When the city worker wages surpasses the farmer wages, some industries will choosenew location. This leads industry spread. With this process, the new city formed. Because those industries spread are industry with low price index effect, so the city they formed is less than original one.Chapter four is an empirical analysis. This study uses a region with rapid urbanization in China. The interaction between industry agglomeration and city scale, the interaction between industry agglomeration and city cluster has been studied in this chapter. The result of this empirical analysis proves the conclusion derived before.Chapter five analyzes the barrier factor in the interaction between the urbanization and the industry agglomeration. Based on all these research, in this article and refering to the organization theory, the author discusses our country's urbanization policy and gives the forecast.