The Evolution of China’s Industrial Agglomeration

The Evolution of China’s Industrial Agglomeration

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Industrial agglomeration is because the disposable moving and free configuring of productive factors. This is an inevitable phenomenon that industries highly concentrated in the particular area beneath the conditions of market economy. Because agglomeration can promote economic development and enhance regional competitiveness, finding the evolution laws and regulations and rules of agglomeration is helpful to develop appropriate regional strategies and industrial policies.Industrial agglomeration remains brought by government in those days of planned economy, industrial structure was inefficient. On the way from planned economy transferring to advertise economy, the fluidity of product factors remains enforced, many industries’ location are brought with the economic rule as opposed to presidency planned policy, industrial layout has altered dramatically.

New Economic Geography theory implies that the commercial agglomeration and regional integration to experience a reversed “U” curve beneath the interaction between proportions of economy and transportation costs, that’s, inter-regional transport costs still decline with the development of market economy, as well as the geographic layout of industries will probably be spread after gathering.

Using the theory this paper analyses the area selection and geographical evolution of numerous industries.By calculating the EG index and CR3 of 18 industries in China through 15 years, this paper acquired a somewhat complete and detailed evolution trend in the industrial agglomeration. The final results shown that numerous manufacturing industries’EG indexes elevated which was consistent with their CR3s, for instance chemical fiber manufacturing industry, electronics and telecommunications equipment manufacturing industry, instrumentation and Cultural office machinery manufacturing, textiles, electrical equipment and machinery manufacturing industry, food processing and manufacturing, paper and paper products industry, chemical fuel and chemicals industry, which basically participate in technology-intensive and labor-intensive industries. But there also same industries whose EG indexes remain unchanged, for instance beverage manufacturing, oil processing and coking industry, pharmaceutical manufacturing, fabricated metal products, ferrous metal smelting and moving processing industry, non-ferrous metal smelting and moving processing industry, these industries are basically resource-intensive industries.

Surprisingly, the gear and machinery manufacturing and transportation equipment manufacturing industry which have apparent economies of scale were hardly elevated in EG indexes and CR3s, this may have something with places limited rationality through the market-oriented reform process inside our country.Regarding for the locations that industries agglomerated, the eastern areas increased to get the finest area while areas declined in concentration. Northeast of China possessed a finest drop, the dominance of several industries in this area are actually substituted with eastern areas. And central regions also stood a slight lack of industrial concentration. With regards to northwest and southwest of China, no matter past or present, their industrial agglomeration level was the least expensive, and through the years, this level becomes further low. Tibet, Qinghai, Ningxia, Xingjiang etc. almost haven’t any manufacturing industries.

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