| Applying fundamentals and viewpoints of urban economics and economic geography, this dissertation explores the basic formation and development drive of large city-regions– large city-regionalization economies from the perspective of industry specialization and diversity. Main research methods used in this dissertation are the combination analysis of normative and positive, qualitative and quantitative, dynamic and static and comparative analysis. The following are this study。Chapter one mainly elaborates the significance, the framework and the method of the study.Chapter two traces previous studies in the relative field and constitutes. After reviewing theories on large city-regions'formation and development at home and abroad, this study puts forward its own theoretical perspective and clarifies the problems to be solved. Based on the summary of formation and development theories of large city-regions, as Megalopolis, Metropolitan Areas, Urban Systems and City-regions both in China and over-seas, it points out the achievements and existing problems in this field and raises the perspective of this research—the division of specialization and diversification. On the basis of reviewing national and international economic development studies of industry specialization, diversification on different regional scales, including the influence of specialization and diversification to the formation and development of mono-city and specialized industrial areas on local scale; the affecting principles and effective form of industrial structure, specialization and diversification in the formation and development of large city-regions on regional scale; the macro regional labor division and regional development, factors affecting regional specialization and diversification, function structures of industry specialization and urban system, the characteristics of urban system based on industry specialization and diversification on national scale and the formation of new international division of labor and the world city system and the emergence of global city-region; the dissertation brings forward the problems to be explored in the paper and its research methods.Chapter three discusses researches of the large city-regionalization economies based on the division of specialization and diversification. In the first place, the connotations and extensions of some concepts, such as large city-region, specialization and diversity, in this dissertation are defined according to the comparison and contrast of two groups of concepts (one is related to large city-region, including Metropolitan Area, City-and-town Concentrated Areas and Metropolitan Interlocking Region; the other has to do with division of labor, including specialization, diversification and diversity as well). Besides, through analyzing geography and economics, we find—researches on the formation and development of large city-region are concentrated in these two subjects, which generally believes that the cause of large city-region formation and development is the contradictory movement of agglomeration and dispersion of economy and the basic drive is agglomeration economies. Meanwhile, it analyses grounding on the types of agglomeration—localization economies and urbanization economies, the limitation of agglomeration economies in explaining the large city-region phenomenon. Whether localization economies or urbanization economies, the focus of agglomeration economies is always on the development of specialized industry area and cities, and it cannot decipher the agglomeration, division of labor and cooperation of several cities in certain geographical space. At last, from the perspective of enterprises production, the conclusion can be reached that, in the process of division of labor, specialization and diversification, the economic source of cooperation relies not only on its internal and external economies of scale and scope, but also on its internal and external transactional and learning economies. Based on this viewpoint, the concept of"large city-regionalization economies"—integrity of economies of scale and scope, labor-dividing transactional economies and learning economies, is put forward.Chapter four explores the micro-foundations of the formation of large city-regionalization economies. It mainly studies the micro-foundation of the formation of large city-regionalization economies in abstract space and answers three questions: First, what are the factors affecting regional and urban specialization and diversity? Secondly, how do specialized cities and diverse cities take shape? Thirdly, what are the conditions for specialized cities and diverse cities to coexist in large city-region? Here are the answers: First of all, there are many factors affecting regional and urban specialization and diversity, most important of which are the resource endow (absolute advantage and relative advantage), demand preference, economies of scale, externality and the cost of trading goods. Secondly, the traditional explanation for the formation of specialized cities is actually an extension of Dunen circle in city space. In the Henderson's model(1974), it could be seen that the main cause for the formation of specialized cities is the existence of localization economies but not urbanization economies. However, city is still"a black box"in Herderson's model. Some later scholars improved Henderson's model on the basis of D-S frame. They give a micro-explanation in the perspective of input sharing, labor market pooling and knowledge spillovers. But inside or outside the D-S frame, increasing returns to scale typically depend on the scale of mono-industry; and the appearing of any new industry would result in the going up of the crowded cost without any improvement in productivity. Consequently, all cities or city systems in equilibrium should be specialized. Thirdly, one approach to form diverse cities is to introduce interaction and externality of related industries or to consider the manufacture transportation cost among cities. As a result, economies of scale and high transportation cost become essential components in forming diverse cities. Another approach is to assume the existence of knowledge spillovers. When profits brought to enterprises by knowledge spillovers outweigh increased crowded cost among industries, diverse cities will exist stably. Thus, based on the analyses of models of Duranton and Pug(2002) and Firestone(2004), it is proved, in this study, that the foundations for diversified cities to exist in large city-region, in the perspective of knowledge spillovers, are:①There must be technical linkages among various industries to some extent②profits brought to enterprises as a result of technical linkages from knowledge spillovers have to outnumber dense cost caused by various industries located in the same area. Therefore, the essential condition for specialized cities and diversified cities to coexist in large city-regions is that the benefit brought to firms and families by knowledge spillovers among industries equals that by knowledge spillovers in the industry.Chapter five studies the manifesting form of large city-regionalization economies on local scale: localization economies, urbanization economies and learning economies. This part mainly discusses different effects of large city-regionalization economies in the formation and development of Metropolitan Area. In the beginning, how do localization economies, urbanization economies and learning economies function in forming central cities in Metropolitan Area? From the aspect of static efficiency, the development of central cities prefers localization economies to urbanization economies; from the aspect of long-term stability, the steady long-run growth favors diversified economies over specialized one; from the aspect of creativity and potential, the creative and continuous growth presides dynamic urbanization economies (Jacobs model) over dynamic localization economies (MAR model). In addition, what is the relation between specialized and diversified industry and metropolis suburbanization? Though quite a few reasons may account for the metropolis suburbanization, causes in orient and western countries are quite different. Suburbanization in the west is mainly due to the pursue of high living standard from the rich and middle class, while in the east it is mostly a result of establishment of urban land payment using system, of reformation of housing system, of reconstruction of ruined and dilapidated houses on a large scale, of improvement of fundamental facilities such as transportation and communication, of huge investment from home and abroad and of strong draught of new economic drive. Nevertheless, suburbanization in economy mainly refers to industry suburbanization all over the world. The significant factor urges mature industry to move towards suburbs is urbanization diseconomies, while localization economies and urbanization economies play an essential role in re-assembling manufacture services. Moreover, the following can be proved in demonstration analyses of large city-regions in Zhongyuan region, Guanzhong region and Shandong peninsula: In the formation and development of large city-region in developing areas, the localization and urbanization economies are less influential than traditional factors like capital and labor, though they do operate in developing the city; in the long run, industry specialization especially sheer specialization lacking diversification goes against the urban development, when diversification possibly has positive effects.Chapter six analyzes the manifesting form of large city-regionalization economies on regional scale: Division of labor and transactional economies—the forming causes of the wholeness of large city-regionalization economies. Firstly, after a brief summary of three models of industry regional labor division—vertical, horizontal and network labor division, it analyzes dominating approaches for industry transaction linkage—vertical, horizontal and mutual complementary linkage, and their respective effects—industry related, competitive and mutual complementary effect. Secondly, taking Zhongyuan Large City-region and Yangtze Delta Large City-region for example, it gives demonstration analyses to labor division and transactional economies. Here are the discoveries:①On the whole, Zhongyuan large city-region(ZYLCR) has the highest level of diversification with the lowest level of specialization at present. It might have to do with the developing stage of large city-region. Since 1992, big changes have been happening in industry specialization in ZYLCR. And year 1998, 2001 and 2004 saw the climax of specialization. The level of specialization, on the whole, tends to be steady or has a slight decrease.②On manufacture level, changes in main specialized industries are big in central cities of ZYLCR. Reconstructing industrial structures is taking effect but still needs to be reinforced.③Dynamically, economic connections are strengthening in inter-large city-regions and between the large city-region and non large city-regions, but the latter connection has a decreasing tendency. At present, forth comes the cross network city centering Zhengzhou and including four stages of economic linking space. The"distance decline"principle is still working, but industrial labor division inter-cities is also an important factor.④According to the input-output statistics of ZYLCR in 2002, ZYLCR have many industries of both strong radiation and strong restriction or of both low radiation and low restriction; However, only a few of industries with strong radiation but low restriction. This suggests that the industrial linkage among ZYLCR is relatively low, at an intermediate level in all key large city-regions of the whole country. It still has a great distance with the developed large city-regions in Yangtze Delta.⑤With the deepening of industrial labor division, manufacture industry in ZYLCR is upgrading from labor denseness to capital denseness. The increasing rate of technological improvement is ascending in both specialized and non-specialized industry. And the contribution rate of technological improvement in specialized industry is higher than that of the whole industry level and in non-specialized industry. Horizontally, the contribution rate of technological improvement in ZYLCR is lower than that in Yangtze Delta when the whole industry level, specialized and non-specialized industry are concerned. The monopolization in ZYLCR is higher than that in Yangtze Delta as well. Generally speaking, the whole economic benefit has increased compared with the past, but there is still a long way to go to reach the level of more mature home large city-regions. Chapter seven studies industry specialization, diversification and development of large city-region against the background of globalization. It analyzes the influences of industry specialization, diversification on two main approaches of linkage between large city-regions and world city system—export and direct foreign investment (FDI) development. Large city-region is a crucial component of world city system and the product of economic globalization and regional economic localization. As the local manufacture network, the large city-region must join the world manufacture network actively if it is to develop fast and quickly. A vital factor working on the linkage is industrial labor division among cities. In addition, export trade is a traditional method to connect the large city-region with the world city system. The content and quantity of imported products depend greatly on industry specialization in large city-region. Researches show that there is cause-effect relation in the variations of the reforming rate of technology, increasing rate of specialized production, of the ratio of capital and labor, of output and product importation. What's more, FDI is a new approach to connect large city-region and world city system. On the one hand, FDI influences a lot the development of industrial area, manufacturing service in central cities, the manufacture zone in sub-central cities and regional creative network, which, in large city-region, have already become part of global manufacture system. On the other hand, agglomeration economies, industry specialization and diversified labor division are crucial variations influencing the location of FDI except the production information cost and policy. At last, based on the quantitative analyses of panel statistics in 13 Chinese large city-regions from 2002 to 2004, it is shown that, other factors being same, beneficial factors for the increase of FDI are localization economies, like manufacture agglomeration economies and foreign agglomeration economies, and urbanization economies. When industrial labor division and organization variation are added, FDI has a direct ratio to industry specialization in cities and an inverse ratio to diversification.Chapter eight summarizes major conclusions and innovations of this study. Major conclusions are:①The study of the formation and development from specialization and diversity is of great significance;②Large city-regionalization economies compounded by Agglomeration economies and Transactional economies is the fundamental driving force for the large city-region;③The micro-foundations of the specialized cities and diverse cities are the interactions among the families and the firms;④On the local scale, Localization Economies, Urbanization Economies and Learning economies are mainly reflections of Large city-regionalization economies;⑤On the regional scale, Large city-regionalization economies are mainly manifested by transactional economies;⑥T he industrial specialization and diversity is an important factor that influences the large city-region docking the world system cities. The main innovations include:①Proposes and defines the term"Large city-regionalization economies";②Explains and verifies the mechanism of the formation and development of the large city-region by use of many mathematical models;③A nalyses the function of the industrial specialization and diversity in the growth of urban from multi-angles;④The industrial division of labor is an important factor influencing the location choice of FDI.
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