Research On The Relationship Between Industrial Agglomeration And Regional Economic Growth

Economic agglomeration is a common phenomenon of economic activity no matter in developed countries such as the United States or developing countries. During the past three decades, economic agglomeration provided lots of materials for economists. In the academic theory, researches of spatial agglomeration created a new field of economics. These studies enriched not only the research of economic geography but also the theory of industrial economics. At the same time, the researches associated these economic concepts such as scalar economics, externalities, monopolistic competition and industry association with the study of the regional economics. Especially in the trends of economic globalization and regional economic integration, economists began to focus more on the relationship between economic development and regional development, making the study of the relationship between industrial agglomeration and regional economic growth attract more and more attention.This paper builds absolute and relative, static and dynamic industrial agglomeration index and models of identification of industry agglomeration development stages by macroeconomic data collection, processing and analysis of China’s manufacturing industry. By the empirical analysis, this paper explores and creates a system of monitoring indicators of industrial agglomeration and comprehensive evaluation model. The resources are reorganized for all regions and industrial agglomeration is real-time monitored by big data analysis(31 provinces, 29 industry-related indicators). The monitoring indicators system shows the country’s manufacturing industry agglomeration in the areas is significant but different in sub-sector industries. This paper finds the level of industry agglomeration in each region is unevenly distributed, especially in Shandong,Guangdong,Zhejiang and Jiangsu whose economic growth are very high and industrial agglomeration levels are also significantly higher than the other provinces. Meanwhile, the western region is just the opposite.On the basis of summary of the characteristics,forms and trends of industrial agglomeration in the regional distribution, this paper verifies the relationship between economic growth and industry agglomeration by building scatter diagram of absolute agglomeration index and regional economic index and establishes Granger causality test and finds their positive correlation and mutually reinforcing. Based on the verification this paper uses quantitative analysis methods to analyze the transportation equipment manufacturing industry and builds the models of the relationship between industrial agglomeration and economic growth. This paper finally explains the relationship between industrial agglomeration and economic growth by the results of the theoretical models.On the basis of summary of the characteristics, forms and trends of industrial agglomeration in the regional distribution, this paper verifies the relationship between economic growth and industry agglomeration by building scatter diagram of absolute agglomeration index and regional economic index and establishes Granger causality test and finds their positive correlation and mutually reinforcing. Based on the verification this paper uses quantitative analysis methods to analyze the transportation equipment manufacturing industry and builds the models of the relationship between industrial agglomeration and economic growth. This paper finally explains the relationship between industrial agglomeration and economic growth by the results of the theoretical models.