Chinese Industry Cluster Analysis

Agglomeration is the extra concentration of the same type of firms in the same region, which is the result of enterprises pursuing the external scale economies. Industrial agglomeration is the representation of industry optimized collocating. External economies will appear when many firms concentrating in a region, industrial productivity and competitive ability will also be improved for the reason of external economies. Industrial location has been guided by the principles of balanced and dispersed industry policy in the period of planned economy, industrial structure is almost same in most provinces accordingly. Such industrial structure is in contravention of industrial location rule. In the process from planned economy transferring to market economy, the fluidity of product factors has been enforced, many industries' location are guide by the economic rule instead of government planned policy, as a result most manufacturing industries began to agglomerate in few regions. The aim of this paper is to study industrial agglomeration in China empirically, to examine if there is agglomeration trend of Chinese industrial location, to seek for the factors influencing the industrial agglomeration and to verify the relation between industrial agglomeration and industrial performance.The object of the paper is 12 second-digit manufacturing industries. Under the guidance of western agglomeration theory, using modern econometrics method, the paper studies manufacturing industrial agglomeration empirically. Industrial agglomeration level is estimated by the index of spatial Gini coefficient, agglomeration speed is estimated by industrial agglomeration index, and agglomeration effects are estimated by the Cobb-Douglas production function. The paper also uses the multiple regression analysis of panel data model to examine the factors influencing industrial agglomeration. The institutional factors are taken into account sufficiently when designing the 15 regression independent variables.There are two new ideas in the paper, the first one is that the Cobb-Douglas production function estimating agglomeration effects of Chinese manufacturing industry is constructed, and the agglomeration effects of 12 second-digit manufacturing industries are gained. The second one is that the main factors influencing Chinese manufacturing agglomeration are found through regression analysis, the meaning of industrial and regional development...