On The Agglomeration Of China’s Automobile Manufacturing Industry

Since the1990’s, industrial agglomeration has become one of the focal point ofmainstream economics research when Krugman put forward new economicgeography theory. Because of the strong industrial related degree and long industrialchain of automobile manufacture industry, the concentration development can be used.At present, Chinese automobile manufacturing industry has become one of the pillarindustry in national economy. However, industry layout was influenced by theplanned economy, the spatial distribution of China’s automobile manufacturingindustry is unreasonable, industrial agglomeration level is still low, it already has thedispersed trend in recent years. For this purpose, how to adjust the spatial ofautomobile manufacturing, improve the level of agglomeration, has become one ofthe urgent problems currently.Therefore, a combination method of theory and empirical research is used in thispaper, based on the points which get from the theory of industrial concentration andliterature, attempts to use the points to analysis changing tendency of two-digital andthree-digital number industrial agglomeration and the influence mechanism of theinfluence factor of Chinese automobile industry, and then build econometric model,verify the influence factors, in order to provide reasonable suggestion of thedevelopment of Chinese automobile manufacturing industry.By measuring the level of concentration degree of two-digital and three-digitalnumber Chinese automobile manufacturing industry in industry and reginal level, theconcentration degree is low. At the industry level, using the space Gini coefficient andthe adjusted EG index from2003to2011to measure double-digital and three digitalindustry, the results show that the whole concentration degree of Chinese automobile manufacturing is low and will become lower, the level of three-digital numberindustry is a little higher than two digital number industry. At the reginal level, theresults show a concentration area has been formed which is mainly composed ofShanghai, Jilin, Guangdong and other areas by measuring the proportion of outputvalue of two-digital number industry of automobile manufacturing from2003to2012and the area entropy of two-digital and three-digital number industry from2003to2011, but the tendency is falling neither double-digital number or two-digital numberindustry.Based on China’s two-digit industry, vehicle manufacturing and auto parts andaccessories manufacturing two measured three-digit industry analysis, it is concludedthat opening to the outside world, labor cost, regional economic level, transportationcost, base industry level and local protection is to promote the two-digit industryagglomeration factor, regional economic level and base level of industry is to improvethe vehicle manufacturing industry agglomeration factors, transport costs is a vehiclemanufacturing agglomeration factor, regional economic level, base industry level andlocal protection is a factor of auto parts and accessories manufacturing industryagglomeration.Through the quantitative analysis of two-digital industry of Chinese automobilemanufacturing industry and two three-digital industries which are vehiclemanufacturing and auto parts and accessories manufacturing, get the main factorswhich can promote the concentration of two-digital industry are open-door to theoutside world, labor cost, regional economic level, transportation cost, expect level ofindustry and regional protectionism. The regional economic level and expect industrylevel are the positive factors which can affect the concentration of vehiclemanufacturing, transportation cost is the negative factors. The regional economiclevel, expect industry level and regional protectionism are the positive factors whichcan affect auto parts and accessories manufacturing industry.On the basis of theory and empirical analysis, put forward the policy suggestionswhich promote the specialization level of Chinese automobile manufacturing industry:first, continue to deepen the open-door to the outside world, second, strengthen the training of professional personnel, third, reduce the transportation cost, forth, cancelthe local protection.