An Research On Hunan's Manufacturing Industrial Clusters For The Economic Growth

Along with the deepening of economic integration , whether in the well-developed "Silicon Valley" of the United States, the underdeveloped "Third Italy", or in Jiangsu, Zhejiang and Guangdong Provinces and other coastal areas, the development of industrial clusters are in full swing, becoming an increasing industrial competitiveness and strengthening the regional economy. However, the understanding and study of industrial clusters in Hunan Province of center China lacks depth, and there has been no empirical research up to now. In order to develop industrial clusters rationally and orderly, this paper conducts quantitative research in the status and the economic growth of the industrial clusters in Hunan province so as to provide recommendations for policy makers.Based on the research and analysis of relevant industry clusters and economic growth, this paper discusses the development status and characteristics of the manufacturing industry clusters in Hunan Province, and systematic analysis of the industrial cluster formation mechanism and the role in the mechanism of regional economic growth. First, the paper uses location quotient index to identify 13 industrial clusters in Hunan Province, followed by the measurement of the concentration level of the overall manufacturing sector with the use of concentration index, and forecasts its development trend. Second, the paper uses the weights of an unknown multi-objective decision-making method to conduct a performance evaluation of the 13 industry clusters in Hunan Province, calculation results in line with reality. Then the paper conducts an in-depth analysis of the tobacco products industry and specialized equipment manufacturing industry clusters, which reports good performance. Third, both from regional and industrial point of view, the paper dynamically explore the relationship between industry clusters and economic growth. From regional aspect, it establishes a panel econometric model with relevant data of concentration indicators of 14 cities in Hunan Province from 1996 to 2007. From industrial point of view, with the use of time-series econometric model, it analyzes the contribution of tobacco industry clusters to economic growth in Hunan Province, The results show that industry clusters have promoted the economic development of Hunan Province. The concentration of industrial output, fixed asset, profits, sales revenue, corporations and investment of scientific research positively correlate with the economic development of Hunan Province. However, the concentration index of the number of employees and economic growth shows a negative correlation, running against expectations and theory. At last, according to the research on the development of Hunan industrial clusters, this paper puts forward effective policies and suggestions to promote the development of the industrial clusters in Hunan Province.