On Degree Of Manufacturing Industry Agglomeration And Its Influenced Factors In Zhejiang Province

Since adopted the reform and opening to the outside world, manufacturing industry has been playing an important role of economic development in Zhejiang province, and it has led Zhejiang's economy forefront of the country. With industrial agglomeration model of"one country one industry","one village one product"and"one garden one industry", different regions in Zhejiang province have formed their own specialized industry which promotes regional economy. Now in Zhejiang province, unbalanced economic development still exists among regions. This unbalanced phenomenon, to some extent, is caused by regional agglomeration and industrial agglomeration.Firstly, this thesis defines the definition and classification of industrial agglomeration, introduces the theories of Marshall's industrial location theory, Krugman's new economic geography theory and other related industrial agglomeration theories, and reviews the existing literature of industrial agglomeration measurements and industrial agglomeration factors. Then based on the research, this thesis looks for the support of the theoretical and empirical analysis below.Secondly, this thesis measures the agglomeration degree of Zhejiang's manufacturing industry from 1998 to 2007 by using Gini index, industry geographic concentration index and Fmn index. The main findings are: Zhejiang's industrial agglomeration degree and specialization degree have continuously ascended from 1998 to 2000, but later have descended all along. The agglomeration degrees in Zhejiang's northeast regions are higher than in the southwest regions, but the specialization degrees show the opposite situation. The high agglomeration degrees mainly concentrate on labor intensive industries and technology intensive industries, the industries are sorted to the following categories: labor intensive industry---technology intensive industry---capital intensive industry by the descending agglomeration degree.Thirdly, using the panel data during 1998 - 2007, this thesis explores the influential factors of industry agglomeration in Zhejiang province with the methods of KAO co-integration test and Pooled EGLS (Cross-section weights). It finds that enterprises'quantity, local demand and average scales of enterprises have positive effects on the industrial agglomeration, while transportation condition and local protectionism have negative effects, and all these results coincide with expects. Empirical results show that the positive influential factors are sorted by significance to the following categories: average scales of enterprises, enterprises'quantity and local demand, while the negative influential factors almost have the same impact on agglomeration. As the degree of opening has no co-integration relationship with agglomeration, this factor has not been tested in this thesis. Technology intensive degree, although included in the model, has no effect on the agglomeration, which is probably related to the fact that a large number of manufacturing industries still lie in low-end industrial chain with low technology in Zhejiang province. Transportation condition has negative impact on the agglomeration, which shows it develops very well in Zhejiang province. Lower transport costs can countervail cost savings arising from agglomeration in this region. To some degree, regional economy to flourish on a large scale is closely tied to well-developed transportation network in Zhejiang province.Lastly, combined with the empirical research and current stage of economic development in Zhejiang province, this thesis suggests some policies to guide the overall layout of Zhejiang's manufacturing industry and the layout of idiographic industry in manufacturing industry.