Research On The Worker's Wage,Government Tax Revenue And Enterprise Development Effect Of Industrial Agglomeration

Under the background of the new normal,economic downward pressure continued to deepen the reform of all social aspects,how to through the economic restructuring reform continues to release more bonuses,promote sustained growth of national income is one of the important standards of reform.Realize the sustained growth of national income is not only beneficial to alleviate the aggregate demand weakness,avoid economic crisis produced by theperiodic relative excess,but also contribute to people's income,government tax and corporate profit growth,to realize the overall welfare level of the whole society.In the numerous factors influencing the national income growth,the role of the industrial development is the most basic and fundamental,and as an important trend of industrial development,how the agglomeration factor influences the income of three economic main body(worker,government,business)in first distribution of national income is the key problem need to research,and whetherthe current development of industrial agglomeration adapt to the industrial structure upgrade process in China,and realize the social welfare level is the desirability judgment and important goal of existing industrial policy.This paperapplies three branches of economics which are new economic geography,urban economics and spatial economics to analyze the chain relations of industrial agglomeration,worker's wage,government tax revenue and profits,to research industry agglomeration effect for the entire national income distribution system by constructing the theoretical model adapted to the China's economic reality.This paper divides the mechanism effect into three important segmengts such as the worker's wage effect of industrial agglomeration,government tax effect and the effect of the enterprise development.The interaction mechanism between industrial agglomeration and the three major economic subjects,the positive and negative of the three effects are the starting point and the foothold of this study.About industrial agglomeration and the worker's wage,this paper from the influence factors of wages in new classical economics,new economic geography and urban economics,analyses the function mechanism of industrial agglomeration affect workers' wages are scale economy,laborsharing,knowledge andtechnology spillover,related industry agglomeration,foreign direct investment,etc.Then combine the new economic geography with urban economics spatial clustering theory,deduced a theoretical model of manufacturing cluster,service concentration and regional wage level.It is concluded that industrial agglomeration rised wages byreducing factor production costs and improving production efficiency.However,industrial agglomeration development process may be accompanied by crowding effect,may lead to the industry development into the "non-economic zone",appear to marginal cost increases,labor productivity reduces,eventually hinder the regional wage increase.Therefore,the influence of industrial agglomeration on regional wages may not be a single linear.About industrial agglomeration and government tax,the key problem is to figure out how the China's fiscal decentralization and official performance appraisal systemaffects industrial agglomeration to standard tax competition model interference in the new economic geography,it is concluded that China's fiscal decentralization and predominantly GDP officials achievements appraisal system is tied,lead to the competition for growth becomes the norm,so the industrial agglomeration factor cannot play the role of alleviating the tax competition among governments.Based on the tax competitiontheory of new economic geography,deduced a theory modelincluding manufacturing industry agglomeration,service industry agglomeration and regional government tax competitionreflecting the China's reality,it is concluded that the slow process of market integration and industrial agglomeration based on policy rentdoes not have locking effect on flow tax base,not conducive to the government tax revenue increase.About industrial agglomeration and the enterprise development,this paper depicted the three influence mechanism and acting path of industrial agglomeration affects enterprise developmentbased on the classical industrial agglomeration theory of Marshall,cost saving and efficiency improvement,labor market share and knowledge overflow respectively,put forward the theoretical hypothesis of industrial concentration level is higher,the more conducive to gather the enterprise development and growth.In addition,considering the industrial agglomeration in different phase can bring different influence to enterprise development,put forward the theoretical hypothesis of the industrial agglomeration and enterprise development may be "inverted U" type of nonlinear relationship.This paper uses the panel data in provincial levelfrom 2004 to 2015 to empirical test the effect of industrial agglomeration on the worker's wage,government tax revenue and enterprise development adopting the dynamic system GMM method.Study found that:(1)The influence of different industrial agglomeration on the worker's wage are difference,the manufacturing agglomeration of regional wage presents the negativeand congestion effect("inverted U" relationship);the service agglomeration has a positive effect on the regional wage level and has no crowding effect;the common agglomeration of industries has significantly promoted the regional wage level.(2)The current China's local government was not tax on aggregate rentscreated by industrial agglomeration,so the effect of industrial agglomeration on local government tax revenue is not obvious.However,the manufacturing industry cluster,service cluster and enterprise tax burden both presents "U" relationship,if industrial agglomeration level continue to improve,the non-pareto equilibrium of the government's "race to the bottom" is expected to be eased.(3)All industrial agglomeration is beneficial to the local enterprises development in different degrees,among which the manufacturing cluster effectively promotes the local enterprises development and does not produce crowding effect;the effect of service agglomeration on the local enterprises development is weaker than that of manufacturing industry;the common agglomeration of industries has a significant positive effect on the development of local enterprises.Finally,based on the above theory and empirical studies,to play the leading role of industrial agglomeration for national income growth,this paper proposes suggestions and strategies that we shouldcontinue to enhance the level of industrial agglomeration,promote the coordination between industry agglomeration,improve the quality of industrial agglomeration,reduce the government policy intervention properly,accelerate the process of market integration,and perfect the official achievement appraisal system.