Research On Effect Of Specialization And Diversification On Urban Economic Growth

Since the Reforming and Opening,China has achieved great economic success that attracts worldwide attention.Both the growth rate of the city economy and the degree of social development have been unprecedented.Urban industrial agglomeration has played an important role in China's urban economic growth to maintain a long stable and healthy growth.With the accelerated pace of urbanization in China and the rapid growth of urban economy,both in number and in scale of China's cities have increased,and large-scale cities have continued to emerge.So that there have been some of the internationally renowned super cities,such as Beijing and Shanghai.However,due to the continuous changes in China's economic policies over the years,widespread phenomenon of industrial structure convergence between cities has occurred.Therefore,many cities' industrial policy has removed from one-sided pursuit of diversification structure to blind pursuit of specialization structure.But if this industry development model is really abled to promote the urban economic growth and consistent with the law of urban economic development? If not,then how do the local governments choose the correct industrial policy and industrial development model to promote urban economic growth? Thereby,the research content of this paper is of great significance.Firstly,this paper analyzes the inner mechanism of how do specialization and diversification influence the urban economic development respectively.The mechanisms of specialization affecting urban economic growth are the labor market sharing mechanism,competition and cooperation mechanism and knowledge spillovers.The mechanisms of diversification affecting urban economic growth are the innovation mechanism,economic stability mechanism and cost control mechanism.Secondly,this paper establishes the three threshold by using the city scale as the threshold variable,and makes an empirical analysis.The results show that,both specialization and diversification whether to promote urban economic growth are depend on the size of the city on a large extent.There is a significant non-linear relationship between specialization,diversification and urban economic growth,and there is an inverted "U" characterize between specialization and urban economic growth.Finally,according to the theoretical and the empirical research of this paper,the conclusion is drawn and the relevant policy suggestions are put forward.Local governments should adjust the industrial structure according to the scale of the city reasonably and avoid blindly pursuing the development mode of specialization or diversification,rational use local financial expenditure and increase investment in infrastructure,optimize the urban industrial structure and promote the sustained and healthy growth of the urban economy,attach importance to the role of human capital,strengthen urban education investment.