Research On The Life Cycle Of Zhe Jiang Textile And Garment Industrial Cluster Based On System Dynamics

Industrial cluster is an advanced model of regional economic development as well as a Powerful weapon that Countries develop their economies and Participate in international competition. However, each Industrial cluster has its own life cycle as a organic being and has the possibility of decline. Rise and fall of the cluster will not only affect the regional economic development, even determine the fate of the national economy. Therefore the life cycle of industrial cluster has been getting wide attention of the academia and the research has important theoretical and practical significance.According to the life cycle theory of industrial cluster and using the system dynamics, the life cycle of Zhejiang textile and garment industry cluster is studied in this paper. First, Zhejiang textile and garment industry cluster is defined and identified with location quotient. On the basis of that, the life cycle of Zhejiang textile and garment industry cluster is divided into germination, growth, maturity and decline period according to the variation of the industrial cluster rent. In order to study the law of Zhejiang textile and garment industry cluster rent change, this dissertation construct the system dynamics model of the life cycle of Zhejiang textile and garment industry cluster. In addition this thesis use profit-to-investment ratio to calculate the difference between the textile and garment industry and the Zhejiang textile and garment industry cluster to measure industrial cluster rent. In the empirical study, the variation of the industrial cluster rent is simulated with the data using system dynamics model. The result points that the Zhejiang textile and garment industry cluster has been in the decline period. In the end, the measures of promoting Zhejiang textile and garment industry cluster are brought forward.