The Combined Effect Of Economic Growth In Shanghai

The agglomeration economies in urban is an important subject in urban economics and regional economics. The studies of agglomeration step into a new stage since 1990s, the method of essential economics has been used in the studies, and the concept of agglomeration has been expanded to the level of urban and region. The research includes industrial agglomeration, human capital agglomeration and innovation agglomeration etc.As a central city of the Yangtze River Delta which is one of the most developed region in China, agglomeration effects is the main characteristic of the relationship between Shanghai and the other cities. Since 1978, Shanghai is experiencing a real strength, has kept above 10% in GDP growth rate for 14years.But at the same time, the other cities also show their sturdy development power. This phenomenon causes obvious change in the spatial structure of Yangtze River Delta's economic development, and the advantage from agglomeration in Shanghai is facing a challenge. In this thesis, the agglomeration effects of Shanghai in Yangtze River Delta since 1978 have been studied. The purpose of the study lies in understanding the change process, inquiring its reason, and provide some valid suggestion for strengthen the agglomeration effects of Shanghai.The thesis process as follows:First, Selected literature on urban agglomeration studies has been comment in detail. After introduce the concepts and theory of agglomeration, the studying progress and method of agglomeration effect in city formation, in industrial development and in human capital are retrospected. This prepared for the design of study framework and select of experience methods.Second, the agglomeration effects of Shanghai are estimated, total factor productivity analysis in a translog production function is chosen. The examine find that agglomeration effect of Shanghai has been exit since 1978, but they show a wide variety in time series. In order to understand this variety, shift-share analysis is used to decompose the growth difference between Shanghai and the other cities. This analysis shows that the growthof Shanghai is mainly pushed by industrial advantage, this result provide an idea of following studies.Third, agglomeration effects in manufacturing and the third industry is examined. On one hand, the spatial characteristic in Yangtze River Delta of 2-digit industries was portrait by CR4 index, and on the other hand, the industrial agglomeration degree of Shanghai is measured by location quote. This result shows that the agglomeration effects in manufacturing and the third industry has decline since mid-1990. In order to discover the reason, a shift-share analysis is adopted in 2-digit industries, and the result shows that although the agglomeration position in manufacturing industry and the third industry has declined, there still shows obvious rise in a few industries, these industries include petroleum industry, printing industry electronics and telecommunications equipments industry, food industry, financial, technological servicing and real estate industry. Estimate of TFP in manufacturing and the third industry shows that scale economies in the two industry are exit, this prove that the industrial agglomeration has a positive effect to Shanghai economic growth.Fourth, human capital agglomeration of Shanghai is studied, the human capital agglomeration and its function to the economic growth and to the innovation active are described respectively. The study shows that Shanghai has obvious advantage in human capital and innovation agglomeration, but the contribution of human capital in economic growth is still less than that of material capital.Fifth, city size, infrastructure, industrial structure and education are selected as factors, to examine their influence to agglomeration respectively. Through the ratio of different index, employee number, weight of infrastructure investment in the fixed assets investment, weight of the second industry value in GDP, students in college are used as index specific of the four factors. The examine result shows that city size, infrastructure and industrial structure have obvious influence to agglomeration effects in Shanghai.Sixth, the whole dissertation is summarized, and some suggestions are put forward, the suggestions include exertive advantage in high technologic manufacturing and productive service industry, as while as grow theadvantage of human capital and innovation activity, in order to enhance the agglomeration effects in Shanghai.