Industrial Agglomeration And Regional Economic Growth In Yangtze River Delta: Academic Analysis And Demonstrative Research

Since the reform and opening, the spatial distribution of economic has changedgreatly. A large of industrial agglomeration appears, especially Yangtze River Delta.Correspondingly, Yangtze River Delta economic is growing faster than in any otherpart of our country and became the leader of economic development. Theappearance of both causes all attention and consideration.Based on theory of industrial agglomeration and theory of economic growth,this paper explains the economic phenomenon of industrial agglomeration goingwith regional economic growth in the perspective of new economic geography andnew economic growth, and put forward the mechanism of industrial agglomerationacting on economic growth. By taking Yangtze River Delta as an example, this paper tests the relationship of industrial agglomeration and regional economicgrowth from multi-dimension..The paper states that the affection of industrial agglomeration on economicgrowth is a result of joint action of multiple mechanisms. A large number of firmsgather to bring great labor demand and market demand, and promote economicgrowth through labor market, labor productivity, market scale, transaction costsreduction, knowledge and technology spillover effect, then economic developmentfurther stimulate more firms agglomerating. The paper measures industrialagglomeration in Yangtze River Delta by adjusted EG index and industrialconcentration index, and then tests the relationship of industrial agglomeration andregional economic growth by using time series model and panel data model. Themain conclusions are:(1), from time, the whole industrial agglomeration is anupward trend, in the early days of economic development, economic growth was thecause of industrial agglomeration, and industrial agglomeration was the cause ofeconomic growth in the later days;(2), from space, most industries agglomerate inShanghai, Nanjing, Suzhou, Wuxi, Hangzhou, Ningbo, and the role of industrial agglomeration is very significant;(3), from industry, the agglomeration level ofeach industry is high, and high industrial level has a remarkable promoting effectsfor industry growth. Based on above study, this paper proposed following policysuggestions from saving land resources, enterprise location choice, enterprise brand-building, education, human capita, knowledge, technology, and governmentfunction.