| Industrial cluster is a new economic phenomenon which occurs accompanyingeconomic growth, the phenomenon that massive firms and pertinent agenciesagglomerate in certain regions reduces the average cost of the cluster, and on the otherhand in reduces the average cost of each firm in the cluster, and then invisible assets ofthe industrial cluster generates. With the agglomeration of regional industry, specificregions can affect the regional economic growth by changing the stock of invisibleassets.The investigation about the location and agglomeration of regional industry can betraced to the statement of Adam.Smith(1776) which is in the literature named "TheStudy about the Quality and Reasons of National Wealth",he begins with the theoryabout division and cooperation of labor, and describes industrial cluster by taking abutton-making industry for example. Then Marx analyzes and illustrates the internalreasons for agglomeration from the perspective of division and cooperation of labor in"Theories of Capital",he points out that division makes the process of production strongin continuity,plan,program and can make "partial workers"engage in one set work alltheir lives, this is helpful for the accumulation of operating experience, the consummateof working method, and the improvement of working efficiency. In "The Principles ofEconomics",Marshall(1980) suggests that industrial cluster is a organization formedwith different size of corporations through division and cooperation of labor, eitherindependent or unofficial alliance, and it owns the flexibility and efficiency of fullcompetition market, so it can be thought that industrial cluster is a new industrialorganization which is situated between market and grade, and he thinks thatagglomeration can bring external economics, he also illustrates that the increasing ofknowledge and transmission of technological information which are caused by theexpansion of industrial scale affects agglomeration, he thinks that ,when thecorporations of pertinent industry agglomerate in one region, they can obtain businessrelationship with suppliers and customers through vertical connection, can draw supportfrom the production capacity of distributors and can control the quality of their productsand so on. Weber(1909) studies industrial cluster from the perspective of agglomerationeconomy, in the statement of "The theory in Location of Industry",when taking thechoices about location of transaction and labor cost into consideration, agglomerationeconomy is very important, corporations can gain economic efficiency which is hard tobe gained in the state of disperse, the systemic function generated by agglomeration ismore than the total amount of each corporation in the state of disperse;In the area ofstudying industrial cluster and agglomeration, economist Hoover(1929) thinks theeconomies of scale is the reason of industrial cluster, he thinks that each industry hasthree different economies of scale, they are single unit (factory,shop and so on )'seconomies of scale, single corporation's economies of scale, and the economies of scaleof the corporations in this industry accumulate in a specific region, the final one is justthe economies of scale of the industrial cluster. The major deputies of New SystemEconomics: Kesi, Williamson, Zhang Wuchang(1983), Yang Xiaokai(1999) also studyindustrial cluster and agglomeration from the angle of transaction cost, the main factorsinfluence transaction cost are the uncertainty of environment, opportunism and theunsymmetry of information. They think industrial cluster can help to decrease theuncertainty of environment, overcome opportunism in transaction and improve thesymmetry of information, then decline the transaction cost. So, we can find thatindustrial cluster is a transaction form and govern construction between market andenterprises from the angle of transaction cost. New economic geography theoriesrepresented by Krugman(1991) also make a explanation for industrial cluster. Krugmanthinks that industrial cluster is generated by the interaction of increasing returns toscale,transport cost and the flow of factors of production through market conduction,and he further analyzes the reasons for the industrial cluster to share labor market andobtain a supplier who has lower cost. American economist Michael.Porter(1998) studiesthe industrial cluster from the perspective of competition economics, he thinks that themembers of industrial cluster are suppliers who supply upriver products,marketingditches and customers in downriver,manufacturers who offer complement goods andother enterprises which have pertinent technical ability or common input, it alsoincludes government or other agencies which supply specialized train,education,information,research and technical support, such as university,quality standardagencies,short-term training agencies and trading associations. He thinks agglomerationis very important for competition, it can help enterprises to be close to workers,publicgoods and the service of related organization, it is also helpful for innovation and export.He further thinks that agglomeration can help regions to gain competitive advantages,and makes out the design thinking of industry policy based on industrial cluster.Following Krugman(1991), Nicholas Craft and Anthony J.Venables(2001) probe intothe important function that agglomeration affects economic efficiency and scale byusing new economic geography theories, they also review the recession of Europe,theprosperity of America and the revival of the future Asia, they think lack of superiorpolicies is the reason of falling behind, but the function that agglomeration affecteconomic growth can not be ignored. Catherine Beaudry and Peter Swann(2001) studythe extent of agglomeration and the exertion method of corporations' efficiency. LuraPaija(2001) further analyzes the accumulation of ICT in Finland, he thinks that theaccumulation of ICT is the engine of economic growth in Finland which based onknowledge, this kind of agglomeration makes the industrial construction of Finlandmore perfect and constructs a competitive advantages system for the country.Federica(2002) depicts the condition of agglomeration of 6 European countries by usingBalassa,Entropy,Krugman indicators, and compares the agglomeration of 6 Europeancountries.Industrial cluster is a new economic phenomenon which occurs accompanyingeconomic growth, the final purpose of studying agglomeration is to explain and proofthe principle that agglomeration affects economic growth in theory and on practice, andto describe the relationship between agglomeration and economic growth. From theclassical period, economic growth has attracted lots of economists. For example,William.Petty, Adam.Smith, Ricardo, and following Solow, Swan, Cass, Koopmans,Romer, Lucas, Barro and so on had done plenty of work on studying the theories ofeconomic growth. Classical economists William.Petty, Adam.Smith, Ricardo make greatcontribution to the study of economic growth theories from the angle of non-inputfactors. William.Petty points out that labor productivity is the major factor to decidenational wealth, he thinks that labor productivity depend on division of labor and thelevel of scale, the more thinly the labor is divided, the higher the productivity is, and thelower the cost of the products, then the profit is more, so national wealth is more and theeconomy grows more rapid. Adam.Smith proofs that capital accumulation promoteseconomic growth for it promotes the increasing of national wealth, he considers capitalas the important factor that can progress the division of labor, technology improvementand improve labor productivity;Rcardo believes that the expansion of capitalaccumulation is the basic reason for the increasing of national wealth, in order topromote economic growth, he presents two propositions: the first one is to abolish the"grain system"at that time in UK, and make agricultural products freely imported, thepurpose is to reduce the price of agricultural products and the monetary wage of theworkers in UK;The second one is to decrease non-manufacturing consumption.Neo-classical economists study economic growth beginning with the input of capitaland labor. In 1950s, Solow and Swan use neo-classical produce function and assume theproduce function is constant returns to scale. In the case of constant saving rate, theydiscuss the relationship among capital stock, consumption and production inequilibrium, and then Solow and Swan economic model generates. In 1960s economistsCass and Koopmans base on Rmasey's variational method, allow for the optimalbehavior of consumers and firms and consider saving rate to be decided endogenously,then reach Rmasey-Cass-Koopmans economic growth model about capital stock andconsumption. Modern new theory of economic growth generates in 1980s, its delegateswere Romer and Lucas, on the basis of Arrow and Uzawa, they introduce labor capitalinto the model and then form endogenous economic growth theory. The new theory'sgeneration not only bring new field for studying economic growth theory, but also makethe phenomenon that using endogenous economic growth theory to study variousmatters derived from economic growth to the climax.From 1970s, with the rapid development of the traditional clusters in south Italyand the comparative advantage revealed in international competition, industrial clusterhas drawn most people's attention. After 1980s, with the development of the industrialcluster: silicon valley and 128 electronic road in USA, medical equipment inMinneapolis, shoe-making in Massachusetts, surgical apparatus in Tuderic of Germany,machine tool in Stuttgart, optical implement in Renela, perfume glass bottle in Buranlevalley of France, network in Sendile of Paris, agglomeration has become the focus ofeach government and regional academia. Colligating the outlook of abroad study aboutindustrial cluster, there are competitive economics represented by Michael.Porter(1998)and practical economics represented by Anthony J.Venables. In China, with thedevelopment of the industrial cluster: electronics in Beijing Zhougguan, necktie inZejiang Chengzhou, gym shoes in Fujian, furniture in Guangdong, spinning in Jiangsu,tobacco treating in Yunnan, motocycle in Chongqing, and with the more important rolethat the agglomeration plays on economic growth, agglomeration has become the focusof regional economic academia, Wang Jizi(2002) investigates the strategy of industrialcluster, Wei Guohua(2002) studies the competitive advantages of agglomeration ofmiddle-sized and small enterprises starting with agglomeration economy. YeJianliang(2001) uses the theory of knowledge spillover to analyze the reason foragglomeration, and to inspect the relationship between competition cost andagglomeration scale.However, these studies mainly focus on technical innovation, organizationalinnovation and policy investigation, but not the mechanism that the agglomerationaffects economic growth. So the purpose of this paper is to explain that agglomeration isa phenomenon which occurs accompanying economic growth, to proof the principlethat agglomeration affects economic growth in theory and on practice, and to describethe relationship between agglomeration and economic growth.This paper, which bases on the theories of regional economics and economicgrowth, analyzes the effects that agglomeration functions on the changes of regionalcapital (invisible assets) and the process of generating goodwill, presents the method tomeasure invisible assets (goodwill). At the same time, it gets patulous Solow-Swaneconomic growth model about industrial cluster basing on economic growth theories,and then depicts the stable per capital by using the model. On the other hand, it analyzesthe effects that the fiscal and tax policies function on agglomeration in theory. Thispaper also uses endogenous description and practical analysis to investigate therelationship between agglomeration and regional economic growth basing on previousanalysis. First, on the basis of Krugman and Romer, it endogenously depicts the processthat the generation of regional industrial cluster induces the changes of proportion ofinvisible assets and further leads to the growth of regional economy, it also presents amodel which takes the trade cost among regions, regional economic increase ratederived from the differentiation in producing a new variety into account, and considersthe relationship between agglomeration and trade cost. Second, in this paper, we usepractical analysis to inspect and analyze the present situation of agglomeration in Chinaand use corresponding statistic data to depict the relationship between agglomerationand economic growth of Chongqing.We can get the following conclusions through the research in this paper:1,Industrial cluster is a medium organization between market and enterprise whichis formed because of the intertrust and the common purpose of obtaining accumulativerevenue among corporations. Only the goods produced by enterprises in cluster has thecharacteristics of separability in technology,big space of difference,low transport cost,and so on, industry just has the basis of accumulation. On the other hand, when themarginal invisible capital is more than the marginal"owned loss" after the enterprisesjoin in the cluster,then the enterprises will accumulate constantly, when the marginalinvisible capital is less than the marginal"owned loss" after the enterprises join in thecluster,then the enterprises will drop out from the cluster, only when the marginalinvisible capital is equal to the marginal"owned loss" after the enterprises join in thecluster,the enterprises can gain maximum revenue.2, It gets patulous Solow-Swan economic growth model about industrial clusterbasing on neo-classical economic growth theories, then depicts the stable per capital byusing the model, and gets the measurement of invisible assets of industrial cluster.3,It gets the economic growth model about agglomeration and regional economicgrowth by using the theory in location and economic growth theories, and then explainsthe mechanism that the agglomeration affects economic growth.4,It depicts the economic relationship between the fiscal and tax policies andagglomeration in theory and on practice. Generally, when all the other factors are fixed,higher tax will stimulate the industry to disperse, and lower tax will attract the industryto accumulate, however, when the supply of the regional public goods increases or thepublic goods is more efficient in declining the cost of production, if the tax is highenough, it will be helpful for the industry to accumulate in this region, that is, if theagglomeration rent generated by regional industry cluster is more enough to make upfor the loss formed by the increase of the tax, higher tax also can lead to accumulationbut not disperse.5,It works out the regional indicators of the industrial cluster by using the statisticdata and researching information of our country and some provinces, analyzes thewhole actuality about the agglomeration of our country, and analyzes the relationshipbetween industrial cluster and regional economic growth of Chongqing by using thesettled data.6,Tabling a proposal on policy. At first, in order to make the regional economycontinuously grow, on one side, we can increase the output of the enterprises in hand ofthe region, a high productivity is helpful for the accumulation and development ofindustrial cluster;on the other hand, setting up pertinent policy about agglomeration andaccelerating the improvement of industrial cluster can help to promote the improvementof regional economy. Secondly, through the outcome of the study about the actualityand the extent of industrial cluster of the western country, we can find that: to promotethe economy of western country and shorten the gap between the west and the est, thecardinal task is not the investment of the hardware but a loose regional policy. Thenature of the government determines that it doesn't have the adaptability andcompetitive advantages which owned by single enterprise, so government should putattention in the field which is out of order and make a loose policy environment for theenterprises of the west. For example, the government can make out transnormal policywhich is helpful for the development of enterprises and industrial cluster, ensure amarket environment of fair competition, encourage technical innovation, stand up to the"honest"between corporations and so on. Meanwhile, only to build and cultivate apolicy environment and culture atmosphere which is helpful for the industry toaccumulate in the western country, the economy of the west will have a well growthbasis.This paper consists of 8 chapters. The first chapter is introduction, in this chapterwe generally discuss the background, purpose, method, content, present situation of theresearch and the innovation of this paper. In the second chapter, there are introductionand explanation of regional theory. and industries organization theory for industrialcluster by using pertinent theory. The third chapter systematically discusses the outcomeof studying the economic growth theory and its progress. The 4th studies thecharacteristics and kinds of agglomeration, depicts the prescriptive and quantitativecondition generated with agglomeration, analyzes and discusses the condition underwhich the enterprise can join in the industrial cluster and the quantitative condition offorming industrial cluster. The 5th chapter is prescriptive study in theory and quantitativedescription in practice about the effects that the fiscal and tax policies function on theindustrial cluster. On the basis of previous chapters, in 6th chapter, we analyze theeffects that the agglomeration functions on the generation of regional capital (goodwill),and present the measurement for goodwill, we get patulous Solow-Swan economicgrowth model about industrial cluster basing on neo-classical economic growth theories,then depict the stable per capital by using the model, meanwhile, this chapter suggests atheory model of depicting the relationship between industrial cluster and regionaleconomic growth by using the method of endogenous growth, and then gets a functionwhich contains the proportion of the invisible assets, transaction cost between regionsand some other variables, it explains the relationship between the industrial cluster andregional economic growth in theory. In the 7th chapter, we inspect and study the locationand the actuality about the agglomeration of our country, and then use correspondingstatistic data to depict the relationship between industrial cluster and regional economicgrowth of Chongqing in model. The 8th chapter makes a conclusion.The scientific innovation of this paper mainly embody in several aspects asfollows:(1), It describes the condition under which the enterprise can join in the industrialcluster and the quantitative condition of forming industrial cluster.(2), It prescriptively studies in theory and quantitatively describes in practice aboutthe effects that the fiscal and tax policies function on the industrial cluster.(3), It presents the way to describe agglomeration and regional economic growthand establishes corresponding growth models, then it states the relationship betweenagglomeration and regional economic growth in theory.(4), It uses practical analysis to study the extent of regional growth, then presentssignificant conclusion and provides operational reference basis and suggestion.
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