Opening Up And Industry Cluster Types

Industry cluster is a hot topic to academic study in recent years. Most of the existing researches focus on reasons of its formation and effects on technical advancement, regional economic differences and wage differences, but ignore one important phenomenon that is the types of industry cluster. In real world, industry cluster types can be divided into two:one is the agglomeration of enterprises in the same industry and the other is the co-agglomeration of enterprises in different industries. Differentiation and investigation between these two types can date back to Marshall (1890), and the latest research about this topic has been included into co-agglomeration of different industries, its focus is the effects of different types, especially productivity effect. However, all these studies have ignored an important question which is the forming reasons for these two types. Exploring the question in the background of open economy has special significance to China’s economic development. That’s also the purpose of this paper.Through Literature Reviewing. Mechanism Analyzing, Reality and Empirical Analyzing, this paper does a research on the mechanism of opening up influences industry cluster types. Based on predecessors’ achievements, this paper tries to find out its mechanism, and then verifies it by using data from Zhejiang, Jiangsu and Guangdong provinces which are the coastal typical areas in China. So this study has theoretic meaning as well as practical significance to investigate the development of industry cluster in typical provinces.Theoretical Analysis and Experience Analysis are both used in this paper. In Theoretical Analysis, researcher starts from literature review in three aspects, those are the relations between industry cluster and its types.the connection between opening up and industry cluster and the relationship of opening up and industry cluster types. Then researcher finds out the mechanism from foreign trade and investment aspects. The result shows that foreign trade and investment can not only promote industries agglomeration, but also scatter them. The final result depends on their comprehensive function. In Experience Analysis, this paper makes a comparison among Zhejiang, Jiangsu and Guangdong provinces from opening up degree, cluster types and the relevance among them, then carries out empirical analysis about opening up characters and trade ways based on the panel date of those provinces from2001to2010. The conclusion has confirmed the guesses based on mechanism analysis. Combined with those aspects of study, this paper argues that, foreign trade and investment will lead to industry mix-agglomeration when they have different directional influence on industry cluster, but lead to industry agglomeration when they have same direction. In addition, various collocations of trade ways will also have influence on industry cluster types.