Markets Relationship, Comparative Advantage And Agglomeration

Agglomeration is a worldwide economic phenomenon. Not only in developed countries, developing countries show similar trends in economic activity together. Owing to agglomeration promoting economic development, governments eager to find out the evolution laws of agglomeration to develop appropriate economic development strategies and industrial policies. However, to the issue of mechanisms for the formation of agglomeration, there is no a concurrence of ideas in academy.Past new economic geography research has stressed in absolute advantage such as increasing returns and local market scale affecting agglomeration, due to one-sided understanding and using comparative advantages, comparative advantage affecting agglomeration is often regarded as unimportant in those beautiful mathematical models. This paper cut in the issue from the regional distribution of our food industry. Through taking expanding comparative advantage of modern trade theory into the framework, grasping the markets relationship changing laws between food industry and related industries especially agriculture, and the food industry's shown comparative advantages changing, this paper studied the economic factors that affect food industry (capital elements) spatial gathering and the impact mechanisms, in particular the important effect of markets relationship and comparative advantage. Ultimately tested results of empirical analysis of the food industry were fully consistent with the theoretical hypothesis. The theoretical and empirical analysis results were corresponding references for the macroeconomic policy-making.This paper has been divided into eight parts, the main research contents and conclusions were:Part 1: since the reform and opening up, China's food industry has growing rapidly, and the level of the regional division has been increased in recent years. The growth of food industry was beneficial from the expanding and structure changing of market, economic restructuring, material factor inputting and technical progress. However, compared with the world's food industry, the ratio of the output of China's food industry to agriculture is still...