The Study On Regional Differences And Micro-dynamic Mechanism Of Industrial Agglomeration In China

With the rapid development of economy and manufacturing industry in China,the study on industrial agglomeration becomes more and more popular. In fact, theindustrial agglomeration in China has its significant difference according to differentareas which always concerns to the eastern、central and western regions in our country.Based on this, this paper firstly constructs its own research framework under theeconomic and social background as well as the corresponding policy background(chapter1), and epurates micro-dynamic mechanism of industrial agglomeration andtransfer after literature review (chapter2). Secondly, by analyzing manufacturing andservice (producer services) industries’regional concentrations in China both fromtheir overall and subdivided dimensions, this paper gets the results that manufacturingand service (producer services) industrial concentrations in the east area are bothhigher than the middle and west areas, and the degree of industrial concentration inthe east area has the characteristics of self-reinforcement (chapter3). Thirdly, byusing the rate of profit based on the cost of production and expenses as the index ofmicro-dynamic mechanism and analyzing the panel data, this paper finds thatindustrial agglomeration and transfer which is also influenced by the labor mobilityunder the background of dual economy can be promoted by micro-enterprise’s profitmaximization behavior significantly and positively (chapter4). Last but not least, bydisintegrating the profit space from the two perspectives of factor supply and productdemand and using spatial econometric method to analyze panel data, this paperfurther suggests that the micro-dynamic mechanism can also influence industrialagglomeration forcefully, and this mechanism’ effect has significant regionaldifferences (chapter5).These findings have theoretical and practical significances. On the one hand, ithas theoretical significance by using theories of industrial agglomeration and transferto analyze industrial distribution in China and epurate micro-dynamic mechanism ofindustrial agglomeration so that expands the scope of application of industrialagglomeration’s theories and provides the micro-foundation for the industrialagglomeration in China. On the other hand, by analyzing the present situationindustrial agglomeration in China and its micro-dynamic mechanism, the results ofthis paper provides assistances for government to pay more attention to this micro-dynamic mechanism when it makes industrial policy, therefore, whether it isto understand the characteristics of China’s current industrial agglomeration and or tomake the relevant policies and measures will have a positive practical significance.