China's Automobile Industry Cluster Development Mechanism And Empirical Study

The study of Industry Cluster is one of the most hot topics of industrial development research in the international and domestic. The in-depth study of cluster type, features, formation mechanism and method of measurement will be benefit for the development of industry and the development of relevant industrial policies. China's auto industry is the backbone of the economy of the industry. With China's accession to the WTO, China's auto market will become a part of the world market, the auto industry will directly face the world competition. However, there is a considerable gap between the current development of China's automobile industry and the world powers. China's automobile industry development policy are not suited to the WTO, the scale of industry and concentration of production is low, labor productivity and specialization level is low, independent research and development capability is weak. In this context, this article will introduce the concept of clustering to the auto industry and raise ideas of cluster development in China's automobile industry.First, this paper concluded the definition of industrial clusters of domestic and foreign scholars, the definition of industrial clusters suited to this paper is given. At the same time, the paper made in-depth study into three different models of cluster which is classified from formation mechanism.Second, the mechanism of the formation of industrial clusters is from the division of work and cooperation, economic growth and competitiveness. That division of labor and specialization of refinement, the pursuit of economies of scale, lower transaction costs and improve the competitiveness of enterprises is the key factor in formation of clusters. Then, the typical measure methods of industrial clusters are listed, and the advantages and disadvantages of different methods are analyzed.Third, in-depth study is made in the actual situation of development of China's automobile industry. Formation mechanism of China's automobile industry cluster, development status, problems are analyzed and level of the automobile industry clusters were measured with H index, LQ and space Gini coefficient. At last, policy recommendations for China's auto industry cluster were raised.