Study On The Pattern Of Mutual Development Between Industrial Clustering And Urbanization Of Chongqing

Since the reform and opening-up, China has made huge progress in urbanization. The urbanization rate rose from17.92%in1978to49.68%in2010. The2010census showed that the urban population was666million. There are more than660cities in China, of which more than120cities have a population of over one million,83cities have about two million,36cities have over two million, and20-plus cities have over five million. In recent years, the population of some mega-cities and urban agglomerations in the eastern coastal areas has exceeded ten million. However, some salient issues in the urbanization process cannot be ignored:1) The development of urbanization is regionally uneven. With fast economic development in eastern and central regions and slow pace in western regions, the urbanization also features a trend of "fast in the east and slow in the west";2) Since urbanization lacks the support of relevant industries, the cities and towns, in the face of "low starting point, low standards and low levels", has no capacity to absorb large rural population;3) Urbanization fails to be supported by scientific, long-term planning, while the urban infrastructure is incomplete and dysfunctional. The horizontal linkages between cities and towns are weak. Therefore, how to promote the development of industrial clustering and urbanization has been a great concern of domestic academia. Despite some achievements, the research on the mutual development of industrial clustering and urbanization in the western regions remains insufficient.It has been clearly pointed out in the Fifth Plenary Session of the17th Central Committee of Communist Party of China that:"Balanced development between regions should be maintained and urbanization should be pushed forward in a positive and sound manner. The master strategy of regional development and the strategy of main functional regions will be implemented, and the urbanization pattern will be improved with enhanced urban management". In the "12th Five Year Plan", the Central Government also emphasizes the need to "promote balanced regional development" and "actively and steadily promote urbanization". These both show the Party and the Central Government's concerns of urbanization and the urgency of urbanization in the western regions.Taking Chongqing as the object of study, this thesis, based on the analysis of mutual logical relationship between industrial clustering and urbanization, proposes a development pattern for Chongqing by evaluating and dynamically analyzing actual situation of the city.I. Main contentsIn this thesis, the research work is carried out from theory to evidence and from abstraction to reality. First, by reviewing related references on domestic and foreign industrial clustering and urbanization, this thesis summarizes the evolution of theories and relevant empirical researches, and explores the mutual logical relationship between industrial clustering and urbanization, which serves as the theoretical basis of empirical researches; second, this thesis presents a comprehensive and systematic evaluation of the mutual development between industrial clustering and urbanization through empirical research and dynamic analysis; third, based on the economic realities in both rural and urban areas of Chongqing, this thesis proposes a pattern and corresponding policy suggestions, with a focus on the pertinence and feasibility of the suggestions.â…¡. Findings and policy implicationsâ… ) Major findings1. Chongqing shows obvious industrial clusters, but the cluster of emerging industries has not been necessarily strong or mature.The industrial clusters in Chongqing are concentrated in the industries of transportation equipment manufacturing, gas production and supply, pharmaceutical, non-ferrous metal smelting and rolling processing, tobacco, instrument manufacturing, office machinery manufacturing, non-metallic mining, non-metallic mineral products, coal mining and washing, printing, reproduction of media and recording, transportation business, and tourism. Although transportation equipment manufacturing and other industries have long developed into large-scale industrial clusters, no clear competitive advantages and cluster effects have been achieved.With the continued advance of industrial upgrading and industrial transfer from the eastern regions, as well as rapid economic growth, there has been a surging demand for some new industrial clusters in Chongqing, such as petroleum, chemical fiber, and mineral resources, while the increasing living standards show a growing demand for light industrial consumer goods. Clusters of some labor-intensive industries like footwear, textile and garment, paper and packaging have emerged and would provide numerous job opportunities, but have not developed into appropriate scales. Thus, these industries shall be provided with certain planning, support and guidance to achieve a certain scale and regional agglomeration at a faster rate.2. Despite the steady progress of urbanization, Chongqing sees a gap from other municipalities.In the past decade, Chongqing maintained a steady progress of urbanization, faster than the national average. However, when compared with other three municipalities-Beijing, Shanghai, and Tianjin, Chongqing sees an obvious gap from them in terms of urbanization rate. The urbanization rates of Shanghai, Beijing, and Tianjin in2009were respectively88.6%,85%, and78.1%, which ranked in top three in China. But Chongqing ranked11with the urbanization rate of only51.6%. In addition, there is a huge difference between different districts and between districts and counties. The urbanization rate is high within the areas of "one-hour economic circle", the distance of which from the downtown Chong is only one-hour drive, while that of Southeast Chongqing and Northeast Chongqing is relatively low. The urbanization rate (about70%) of the "one-hour economic circle" indicates that the process of urbanization there has stepped into middle and final stage, and the speed of urbanization is expected to decline; while there is still much room for the growth of urbanization in Southeast and Northeast Chongqing. 3. There exists a driving force of mutual development between industrial clustering and urbanization in Chongqing.The dynamics simulation model of Chongqing's industrial clustering and urbanization shows the existence of a driving force of mutual development between industrial clustering and urbanization. With the mounting value and expansion scale of industrial clusters, a great number of enterprises have achieved division of labor in a certain area and therefore, have produced significant concentration effects and promoted the development of the enterprises within the clusters. The development of industrial clusters can promote the adjustment and optimization of regional industrial structure, reduce the labor of the primary industry, promote the transfer of surplus rural labor to urban areas, and enhance the level of urbanization.On the other hand, urbanization provides a geographical space for the clustering of industries; the enterprises and industries continue to concentrate in a certain area and seek for industrial clustering and scale of development through exchanges and cooperation in the area. The technical training, human resources, infrastructure, supporting services and other functions that are uniquely available in the cities and towns provide an effective support for the further development of industrial clusters; the growing urban population provides a robust consumer market (consumption capacity and spending power) for the development of industries.4. Chongqing Municipal Government plays a leading role in promoting the mutual development of industrial clustering and urbanization.This thesis proposes the pattern of mutual promotion and common development between industrial clustering and urbanization in terms of market and government respectively. Local government has played an important role in the development of industrial clustering and urbanization of Chongqing, namely the mutual development of industrial clustering and urbanization is mainly achieved under the leadership of local government. With solid industrial base, the local government shall issue preferential policies to attract institutional investors and talents, gradually creating a favorable external environment. In particular, in the early stages of urbanization and industrial clustering, the local government shall gather talents, materials, capital, and other production factors to maintain a stable, harmonious relationship between the industries. Besides, the industries shall be supported to promote the development of urbanization. II) Policy implicationsThis thesis not only draws on experience from the eastern developed coastal provinces and municipalities in promoting urbanization through industrial clusters, but proposes some policy recommendations on the mutual development between industrial clustering and urbanization based on Chongqing's economic and social reality:1) Industrial planning and urban planning shall be combined to establish a scientific regional development planning system;2) Regional innovation system shall be further improved to promote the mutual development between industrial clustering and urbanization;3) The industrial clusters with regional characteristics and competitiveness shall be developed to enhance the quality and level of urbanization;4) The supporting services for industry clustering shall be improved, and high-grade public services shall be provided to ensure continuous urbanization;5) The government shall play a leading role in the mutual development between industrial clustering and urbanization.III. Characteristics and innovationsFirst, this thesis tends to propose a mutual development pattern between industrial clustering and urbanization in Chongqing, which is an attempt of extending the theoretical system of industrial clustering and urbanization, by analyzing the mutual logical relationship between industrial clustering and urbanization, and by evaluating the level of mutual development between industrial clustering and urbanization.Second, the thesis also makes policy suggestions on how to promote the mutual development between industrial clustering and urbanization in Chongqing. Namely, multiple measures should be taken to promote the mutual development between industrial clustering and urbanization by establishing an advanced development planning system, improving innovation system, building industrial clusters of local characteristics, enhancing the supporting services in the industrial clusters, creating a good political environment, and giving full play to the leading role of local government.