A Empirical Study Of Chinese Regional Specialization And Industry Agglomeration

Before the 1980's, the location of Chinese industry is determined by some uneconomic factors which emphasized geographical proximity to mountains, dispersion and concealment. These factors led to that the relationship of the location of industry and the usage of land reverses. Reform and open policy in 1979 and the market economy system make the location and agglomeration of Chinese industry changed dramatically.The content and structure of paper are developed by the following questions: Dose the regional specialization of china change? Whether the industry structures among the Chinese provinces are the same? How did the location of Chinese industry change? What are the phenomenon and characteristic of the agglomeration of Chinese industry? What are economics factors determined the location and the agglomeration of Chinese industry?According to the content and the emphasis of this paper, I choose three kinds research method: statistics analysis, logic and reasoning and empirical studies. The review of literatures part introduces the different theories of the industry location and their views about the phenomenon of the industry location and agglomeration, as well as explain the reasons and determinants of the localization and agglomeration of Chinese industry: regional comparative advantage, FDI, economies of scale , the intra-regional transaction and transportation costs. The following part descript the Chinese industry regional specialization, the Chinese industry locational Gini coefficient and the location and agglomeration of manufacturing industries, which suggest that degree of Chinese industry specialization has increased over time; there is a growing production disparity between the provinces and a increasing differently from the national structure.; the spatial location of Chinese industry has changed substantially, with higher degrees of geographical concentration for many manufacturing industries; the manufacturing industry locate at the east provinces and FDI spatial location accelerate the Chinese industry agglomeration. The econometric analysis and regression results show that industry localizes in places where the market is large, the intra-regional transaction and transportation costs are lower, FDI concerned and higher wage levels and price increases in industry regions have not yet had a significant effect on industry location.