Research On Agglomeration’s Growth Effect On China’s Manufacturing Industry

Since the beginning of reform and opening up, China’s national economy has been achieving rapid growth, which is intimately associated with the fast development of China’s manufacturing industry to a great extent. Thanks to the agglomeration of industrial capital and resources from domestic and abroad, China’s manufacturing industry experiences a steady increase.In the stage of formation and growth, elevating industrial agglomeration will push forward economic growth positively until it enters a mature stage. However, once it hurtles across the mature stage when the degree of industrial agglomeration exceeds regional bearing capacity, it will dampen the economic growth. Hence, the industrial agglomeration in different stages will have a positive or negative effect on growth. Therefore, in the process of spatial evolution, it is significant to study how to attain manufacturing industries’ further development through the growth effect of industrial agglomeration.Based on the research theories, combining with manufacturing industry data of 31 provinces, this paper examines the current situation and development trend of agglomeration of China’s manufacturing industry, and uses the panel model to analyze its various impacts on different provinces. The result indicates that the scale effect and crowding effect of industrial agglomeration both have influences on China’s manufacturing industry. Nowadays, the agglomeration of China’s manufacturing industry turns to decrease overall, while the east region enjoys a higher agglomeration than the west and the central grows even faster than the above two. On the whole, agglomeration’s growth effect of China’s manufacturing industry gets weak and the output elasticity of it is high in the central region and low both in the east and west...