The Influence Of Selection Effect On Industrial Spatial Distribution

The spatial distribution of industries in our country has presented “two-way transfer” characteristic in recent years. Besides the traditional agglomeration and dispersion forces with the homogeneity of firms as its basic premise, the selection effect is another force to change the spatial distribution of industries under the assumption of heterogeneity, and offering a new perspective of the distribution duality of market share and productivity effects. To make research on how enterprises’ spatial choice affect the distribution of industries, the paper makes theoretic and empirical analysis of this issue on the basic of “new” new economic geography theory.Firstly, it builds an initial symmetrical two-space model taking the heterogeneous enterprise production efficiency into the model, then analyze the enterprise’s location choice when the spatial equilibrium reaches, and finally put forward the hypothesis:selection effect on industrial spatial distribution exists considering heterogeneous enterprise production efficiency. Then it uses the data of 28 provinces in 10 typical manufacturing sector from 2000-2011, and calculates TFP value by the method of levpet.Then it takes the lag of TFP as instrumental variable and the traditional economic geography factors as control variable to demonstrate the selection effect between TFP and industrial agglomeration by using the random effect panel model. The results show that from the enterprise heterogeneity perspective, the space differs between share and efficiency. The selection effect based on enterprise production efficiency heterogeneity effect is the fourth power of the spatial distribution of industry. The industrial agglomeration extreme based on the production efficiency heterogeneity does exist, and it differs among different industries. To realize the reasonable layout of the industrial structure, on the one hand, the government should promote the elements to flow freely and allocate resources rationally according to the development stages of different industry to improve resource utilization efficiency. On the other hand, our governmentshould pay attention to improving the efficiency of production in less developed areas.