Research On The Influence Of Industrial Agglomeration On The Distortion Of Inter-city Factors

As an economic geographical phenomenon,industrial agglomeration has an important effect on the capital and labor allocation within and between cities.Since the reform and opening,a large number of urban agglomerations have emerged in China,mainly represented by the Yangtze River Delta,the Pearl River Delta and the Beijing-Tianjin-Hebei urban agglomeration.They are benefited from the optimal allocation of resources by industrial agglomeration.Studies have shown that the scale and scope economic effect of industrial agglomeration can improve the degree of city elements distortion,optimize the efficiency of resource allocation among cities,and strengthen regional synergies.However,when the industrial agglomeration develops to a certain scale,there will be problems of excessive industrial agglomeration:crowding effect,excessive competition effect,and environmental pollution.These factors have largely restrained the common development of cities inside the agglomeration area and cities outside the agglomeration area,which has hindered the improvement of inter-city distortions.It can be seen that the impact of industrial agglomeration on the distortion of inter-city elements has two sides.Therefore,we have theoretical and practical significance to explore the net effect and mechanism of industrial agglomeration on the distortion of inter-city elements.This paper takes the manufacturing enterprises as research target in the 1999-2009 China Industrial Enterprise Database,and calculates the degree of capital and labor distortion between cities in each province,and studies the industrial agglomeration affecting the distortion of inter-city elements.The mechanism was analyzed and an empirical test was conducted.Firstly,from the perspective of theoretical analysis,this paper measures the degree of distortion of the elements,and theoretically analyzes the mechanism of industrial agglomeration affecting the distortion of elements between cities,and proposes theoretical assumptions accordingly.Subsequently,this paper empirically verifies the theoretical assumptions.The first step is to clarify the current state of inter-city distortions in China and its relevance to industrial agglomeration.Secondly,it takes the prefecture-level city as a sample and analyzes the net effect of industrial agglomeration on the allocation efficiency of capital and labor factors among cities through the panel threshold model.The results show that industrial agglomeration can be divided into three different stages of development:the initial stage of agglomeration has a strong positive economic effect and can optimize resource allocation;in the second stage,the effect of capital distortion improvement is weakened,but labor distortion is still in the improvement stage;In the third stage,the effect of capital distortion improvement continued to weaken,but labor distortions were in an intensifying stage.Therefore,timely and rationally guide effective industrial agglomeration,improve capital policies and labor policies,improve resource allocation efficiency,will fully realize the economic effects of industrial agglomeration to achieve optimal allocation.