The Study On The Extend Of Urban Economic Agglomeration Affects Labor Productivity

Since Marshall in the early19th century, the theory of economical agglomeration has been achieved considerable achievements. Later scholars from different perspectives of economic agglomeration built different models. So made the theory of agglomeration more and more mature and perfect. Existing studies showed that the theory of industrial agglomeration can be used to explain the improvement of labor productivity caused by agglomeration. However, in the city level, what’s the impact of economic agglomeration to the labor productivity? And if there any differences in the effects between cities of different sizes and different blocks?Based on the above research objectives, this paper first made a detailed comment on the domestic and foreign literature about economic agglomeration and labor productivity. Pointing out the achievements and deficiencies which the current research have been obtained. Then, made a detailed combing of the theory of economic concentration and labor productivity.so we gain a clear idea of the content and measure indicators of economic concentration. The meaning and influence factors of labor productivity also have a system of understanding. Finally, by referring to the cutting-edge method of dynamic panel data, and using the panel data of249cities in China during2002-2009, we empirically analyze the impact of output density to the non-agricultural among the national cities and cities of different sizes and different blocks. Empirical results show that:(1)2002-2009,China’s output density effect on labor productivity is0.0867, which means that the output density has a significant role in promoting the non-agricultural.(2) There is agglomeration effect differences between cities of different size, and the promotion of the higher level cities is greater then the size of the lower level cities.(3) There is also agglomeration effect differences between cities of different blocks, the effect of eastern cities is significantly higher then the central and western cities, however the effect in the northeastern cities is not significant. This shows that in the current case of uneven distribution of China’s industry, economic concentration is the reason of the labor productivity gap between regions.Finally, based on the theoretical analysis and empirical research, we put forward some policy recommendations to improve our productivity and reduce the development gap between regions.