Study On The Developmental Strategy Of "Taiyuan Economic Circle"

With the development of economic globalization and regional integration, economic circle or urban agglomeration, this new mode of regional economic development is gradually becoming an important characteristic in global economic development. This trend of China's regional economy also shows the growing demand. Nowadays, China has gradually established three large economic circles; they bring together the core of China's economic development. Against the background of the rise of Central China, the governments have also built their own economic circle or urban agglomeration in the other five provinces. Therefore, the government in Shanxi poses to establish the strategic thinking.Through the method of theoretical and empirical analysis, this paper analyses the necessity, feasibility,trend and difficulties of"Taiyuan economic circle"in order to provide theoretical points and policy recommendations for regional economic development. Around this purpose, this paper is divided into five sections to elaborate.The first section introduces the main theories about economic circles, such as the theories of location, comparative advantage, regional joint development, industrial structure and spatial structure, and then explains the general situations of domestic and international economic circles.The second section analyses the necessity of"Taiyuan economic circle", it thinks that the construction of this concept is not only to support and guide the economic development of Shanxi Province, but also to give full play to"a connecting link between east and west"and make the economic development of central region even the whole country gain adequate energy security. Then, it studies the feasibility from the natural, economic and social point.On this basis, the third section brings forward some policy recommendations, such as the establishment of industrial estates and industrial clusters.The fourth section focuses on the issues of regional development from the administrative division, industrial structure and spatial structure. For the issues of the fourth section, the last section makes appropriate countermeasures, it considers that the development of"Taiyuan economic circle"should avoid the merger of administrative region, carry out the strategy of economic integration. At the same time, it adjusts and optimizes the economic structure.Through this demonstration, it does more detailed research for the developmental strategy of"Taiyuan economic circle"in the mass.Compared to the research of other scholars, this paper has comprehensive, theory and practicality on the identification of regional superior industrial clusters and the selection of regional major industries. And it brings to construct industrial clusters from the economic angles of transaction costs, exterior, joint effect, and select major industries from the five standards of regional advantage, industry association, income elasticity, rate of increase in productivity, environment. However, it only poses industrial estates and industrial clusters, this makes the angle restrictive, and its depth is inadequate on the adjustment and optimization of regional economic structure. The author hopes to supply and perfect this paper in the future.