A Study On The Forming And Deriving Mechanism Of Industry Clusters

Industry clusters refer to the phenomenon that mutually related enterprises and institutions congregate in a certain area. It has historical origins in the local community, consisting of competing as well as cooperating relationship among enterprises. This paper depicts the forming path, the industrial condition and the effect of clusters as background knowledge. The literature of New Classical Economics views the economic development as a process of evolution of the division of labor. According to some case study, we hold that the forming and developing of industry clusters is also in such a process. However, the evolution of the division of labor depends on the transaction efficiency. So we shed light on the function of social capital, the role of which is to improve the transaction efficiency, to advance the evolution of the division of labor, and to promote the development of industry clusters in turn. As a result, local governments shall work for the cooperation-favored institutional conditions, which is beneficial to accumulate social capital and also in the interest of industry clusters. Then we develop the framework of cluster deriving and apply it to analyzing the prospect about industrial readjustment in Pan Pearl River Delta District Cooperation.