A Study On Urban Agglometation' Effect Of Scale Economy In China

Urban agglomeration is a relatively new economic geography phenomenon. There are not much theoretic and empirical working paper as for quantity. In China 35 central cities declared to set up urban agglomerations.The construction speed of urban agglomeration is accelerated.The reason that decision-maker want to set up urban agglomeration is existence of urban agglomeration's economic scale effect. Urban agglomeration's economic scale effect is overstep which come from Urban agglomeration's GDP substracting summation of individual city's GDP.Economic growth theory and scale economy theory cannot explain the existence of urban agglomeration's economic scale effect. The reason is that every city's economic growth can be explained by labor,capital,technology,management,et. Luckly,coordination game theory give the clue for it. In the game,one player's relatively higher action stimulate another player's higher action. Thus,this game bring extra benefit for the two players. Such benefit is called"positive spillover", which is just the urban agglomeration's economic scale effect. Following emipirical research proofed the existence of"positive spillover".This is really a breakthrough in the urban agglomeration area.Following analysis is that urban agglomeration's economic scale effect is synthetical system,which include industrial agglomeration effect, market scale effect,resource allocation effect .In the dissertation ,we computate out all the effects.The empirical research is the core of the dissertation.It is divided into 5 parts,the main idea for each is as follows:The first part is the first chapter which states the meanings of this topic,provide research logic and methods,summary of literature on urban agglomeration's theory, summary of the analysis scheme and content,finally make a conclusion of originality and weakness.The second part is the second chapter. It talks about theories which are relative to the urban agglomeration studies.They are scale economy theory,economic growth theory,industrial agglomeration theory,resource allocation theory, regional incorporation theory.The third part is third chapter which is the foundation theory of urban agglomeration. We first states the normal knowledge about Chinese urban agglomeration..We discuss urban agglomeration's character and classification. First,dissertation states urban agglomeration's connotation.Then,we confirmed the time of urban agglomeration's shaping.Following is about why 5 urban agglomerations are chosed as study targets.Then,we focus on mechanism of urban agglomeration.The main three dynamics are natural power,market power,government power.We discussed the whole process of urban agglomeration,from agglomeration economy to shaping of city ,to the urban agglomeration,to the megalopolis,to the regional incorporation.The forth part mainly discussed urban agglomeration's economic scale effect system,which still include industrial agglomeration effect, market scale effect,resource allocation effect.About first effect, we study on theoretic fundament of urban agglomeration's economic scale effect.In the coordination game model,we finded that"positive spillover"really exist.We can proof that"positive spillover"is just the urban agglomeration's economic scale effect.Then,we computate the urban agglomeration's economic scale effect.About secnd effect,we study the industrial agglomeration effect in urban agglomeration. First part is the study on theoretic fundament.Second part is the empirical research of industrial agglomeration effect in urban agglomeration.About third effect,we study market scale effect in urban agglomeration, which is the second important part of urban agglomeration's economic scale effect. This part involed labour market,commodity market,capital market.Labour market scale effect come from destruction of barrier among labour market.Commodity market scale effect come from"trade creation"and"trade transfer".Capital market scale effect come from capital's regional deployment optimation. Empirical research is included in the ladder part.About forth effect,we study resource allocation effect, which is the important part of urban agglomeration's economic scale effect.It is the one of the double faces for the same people. Resource allocation effect put most effort on the structure effect which can improve the using efficiency of resource.Focuses are on the labour market,commodity market,capital market.The fifth part that included the eighth and night chapter discussed the main factor that constrainted the release of urban agglomeration's economic scale effect and policies and suggestions on how to optimize urban agglomeration's economic scale effect.By the empirical analysis,following conclusion are obvious.As for economic scale effect.Yangtse River Delta urban agglomeration ranks first.Zhu River Delta urban agglomeration, Jing-Jin-Yi urban agglomeration and ShanDong Peninsula urban agglomeration rank second which are at the same level.LiaoNing central urban agglomeration rank third Which is equivalent 50% of second ones.As for industrial agglomeration Effect.Yangtse River Delta urban agglomeration ranks first. ShanDong Peninsula urban agglomeration rank second .Zhu River Delta urban agglomeration rank third. LiaoNing central urban agglomeration and Jing-Jin-Yi urban agglomeration get negative effect on the Industrial agglomeration,which mean the decline trend of Industrial agglomeration.As for Market scale Effect. Jing-Jin-Yi urban agglomeration ranks first. Yangtse River Delta urban agglomeration ranks second. Zhu River Delta urban agglomeration rank third.ShanDong Peninsula urban agglomeration rank forth.. LiaoNing central urban agglomeration rank fifth.As for Resource allocation effect. Yangtse River Delta urban agglomeration ranks first. ShanDong Peninsula urban agglomeration and Jing-Jin-Yi urban agglomeration ranks second which are at the same level. Zhu River Delta urban agglomeration and LiaoNing central urban agglomeration rank third.After getting these concluions,we focus on the factors that influence urban agglomeration economic scale effect.They are net benefit from game,industry comparability,ill-function of market,low ability of central city in resource allocation. City put much concentration on the net benefit from game when they decide to cooperate or not.The non-central city did not get expected profit from industrial cooperation with central city.So,they would not like to cooperate with central city.Government efficiency assessing system and finance-tariff reform in 1994 strenthen the competition between the cities.Industry comparability influence industrial agglomeration effect.In the Zhu River Delta urban agglomeration,almost every city choose the same two backbone industries.Same phenamena happened in the Yangtse River Delta urban agglomeration, Jing-Jin-Yi urban agglomeration, ShanDong Peninsula urban agglomeration, LiaoNing central urban agglomeration.Ill-function of market reflect itself in the three aspects:Segmentation of labour market;trade barrier,system problem stemming the money flow. :Segmentation of labour market owe to the field allocation system and social insurance system.Trade barrier owe to the low speed of production elements. System problem stemming the money flow owe to the three bad points:one is cooperation thoughs;Second is operation system of banking institutions.Three is bad point in trans-city monetary service and infrastructure.Low resource allocation ability lies in the three aspects:one is the low growth of third industry in central city.Second is low growth of goods circulation in central city. Third is low growth of capital industry in central city.Policies and suggestions on how to optimize urban agglomeration's economic scale effect are also four ones.First, setup of new benefit allocation is important.We need much communication, setting up new industry connecting zones,implementation of compensating system between the industry city and non-industry city.Second, we should consummate industry innovation and cooperation system.Much effort will be put on the companies restructure.We also improve industry proliferation of central city.At the same time,we need to consummate technical service system.Third, we need to speed up the market incorporation in the labour,commodity and capital market. Forth,we need to improve resource allocation ability of central city.Modern service industry can converg high-quality labour,Normal service industry can absorb large quality workers.Furthermore,we should improve commodity allocation ability by converging the commodity.At last,we need to set up the regional capital center, property right center,capital innovation center.As we get some primary conclusions,there are still some deficiency in it .We did not get the complicated analysis of industrial agglomeration effect because we can not get the datas inside the manufacturing.If such data can be achieved by the upswing of statistical method,it will be calculated again.