| Industrial Upgradding is a hot topic of Economics Research in China.It’s also one of the most important government policies for the transaction of economics growth mode. For the regional economics, the most important connotation of industrial upgrading is the improvement of regional industrial productivity. To improve the prouctivity of the regional industry,one of the important ways is increase the inputs and its accumulation of different factors of production.Then, as a significant economic phenomenon Industrial agglomation is vital for the accumulate of the production factors, besacuse the characteristic of agglomeration is the regional concentration of firms and different production factors. However, many researches of this field aim to focusing on not only industrial structure change but also the productivity effect of agglomeration.Becasue of this, most of these researches are lacked of a compound analysis framework and its perspective. Therefore, this paper aims to take the factor accumulation into account, and find the theritical mechanism of the agglomeration and industrial upgrading from the regional opening up perspective,and build up a whole research framework with agglomeration and industrial productivity upgrading. Then, this paper will alse carriy out the empirical research based on the regional database of China.and finally make some advises for the strategy of regional industrial productivity upgrading in China.On the theorical part, this paper aims to find the mechanism relation and found the mathematical model under the opening-up perspective of the three keywords which are agglomeration factor accumulation and Industrial upgrading. First of all, this paper found a mathematical model of industial agglomeration under the hypothesis of regional opening-up,then this paper modify the classic vertical linkage model which was found by Venables in1996to discuss the agglomeration externality which were the strengthen mechanism of factor accumulation,and then get the first proposition named factor accumulation effect of industrial agglomeration. Secondly, this paper divide the agglomeration externality into MAR externality and Jacobs externality,and Put forward the endogenous accumulation of human resource based on the two different kinds of externalities, and get another two agglomeration propositions of indirect and direct effects which can affect improvement the industrial productivity as follows:MAR externality mechanism, Jacobs externality mechanism,internal industrial division and competitive mechanism,external industrial division and competitive mechanism.Finally,this paper bulid up a whole double opening-up analysis structure based on the theorical works before.On the emprical part, this paper make the double reality of Chinese regional opening-up into account that different Chinese regions have its own characteristic of opening-up within China and to the the other countries.The empirical works have been carried out to examine the three propositions above based on the Chinese regional panal data in1997-2011.This paper also focusing on if different regions has different effects on the improvement of industrial productivity with factor accumulation. The conlusions of the empirical works can be summarized as follows. Firstly, the agglomeration of Chinese manufacurature industry has a significant positive effect on the regional endogerous human resource factor accumulation. So does the effect of Regional Openning-Up to the regional endogerous human resource factor accumulation.The conclusion are strongly robusted accounding to several more tests which had been carried out.Accounding the further study of devideing the sample of the panel data into3part which are East region Middle region and west region,he most significant region of this p phenomenon is middle-region in China.Secondly, accounding to the examination the Chinese regional industry productivity,This paper verify that the specializd agglomeration has a significant positive influence on promoting the industrial productivity. What’s more important, the influence can be devided into two different parts that are indirect effect and direct effect.The indirect effect of agglomeration is its factor accumulation effect which can positively increase the industrial productivity,and the indirect effect of agglomeration is its market division and completion effect which also has a positive influence on the industrial productivity.The empirical conclusion are also strongly robusted aftering been tested by several ways.furthermore, accounding to the examination the20different two-digital manufacturing industries in China, This paper also found that the effect mechanism of the specializd agglomeration for promoting the industrial productivity are totally different in different subdivision parts of Chinese manufacturing industry.Finally,this paper also aims to carry out the empirical works on the study of the Chinese regional samples which were divided into3categories by its different opening-up conditions.The conclusion are interesting that high opening-up regions canbe proved as positive humanresource accumulation and positive industrial upgradingmediums opening-up regions canbe proved as positive humanresource accumulation and non industrial upgrading,and low opening-up regions canbe proved as negative humanresource accumulation and non industrial upgrading.
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