Research On Division Among Industry Agglomeration With Disintegration And Low Transformation Cost

As the development of industrial agglomeration in 1990s, it has great influence on economics, therefore the enthusiasm of industry agglomeration research has achieved at an unprecedented level. Paul Krugman from Massachusetts Institute of Technology (MIT) won Nobel economics prize in 2008 for his outstanding contribution in new-economic geography and new-trade theory, which symbolizes mainstream economics has great affirmation for maturing industrial agglomeration. Although new-economic Geography, Regional Economics and Industrial Economics have fixed together in some degree. But for present research situation, there are three main problems at present: First, industry agglomeration division is ignored. In fact, industry agglomeration is the outcome of social division. Second, the research mainly focuses on the forming of signal agglomeration, missing mutual connection. Third, it lacks attention at bi-dimensional study, leading to lack of micro data evidence. Therefore, a new theoretic framework is definitely needed to full and develop industrial agglomeration theory.The paper brings forward that main study point on industrial agglomeration division on the precondition of the same openness and development. Through describing micromechanics caused by industrial agglomeration division, it identifies that vertical decomposition and transport cost play an important role in industrial agglomeration division, explains how several scatting industrial agglomeration evolve to be wider in scale boundary and more competitive in industrial arrangement.In empirical analysis, the paper defines industrial agglomeration by two dimension of space and economics, by using the three digit number of city(municipality), as basic object of study, sampling the data of Yangtze River Delta manufacturing enterprises from 2001 to 2006, using Eliison and Glaeser industrial agglomeration index to scope industrial agglomeration, using joint agglomeration index to pressure industrial agglomeration division about two-digit number industry groups in Yangtze River Delta, deciding industrial agglomeration division posture in the entire area and the degree of industrial agglomeration division. Then, the paper estimates the degree of vertical decomposition and transport cost at the same time in Yangtze River Delta, checking their influence on industrial agglomeration division. At last, the paper calculates industrial isomorphism in Yangtze River delta, explains industrial connection in industrial isomorphism in the area.Through theoretic study and empirical analysis, it comes to the conclusion. First, industrial agglomeration division comes into existence when industrial agglomeration develops to a certain stage. At present, industrial agglomeration in our country is in the uprising stage of U-style development. As industrial agglomeration becomes more professional, its insularity and exclusivity come to light, standing into the way of industrial promotion and restructure. Therefore, it is necessary to integrate relatively independent industrial agglomeration. Empirical analyses show that there is notable positive correlation between industrial agglomeration and industrial agglomeration division.Second, formation of industrial agglomeration division relies on deepening of vertical decomposition. In the area of industrial agglomeration, due to externality, trade of intermediate products becomes easy and convenient, shared labor and technology further advance division and professional production. But as deepening of vertical decomposition and professionalization, relations between enterprises become more loose and frail than in a vertical integrated condition. In a small market of vertical decomposition professionalization of intermediate products increase, and generation decrease, which affects industrial development. So it is necessary to use geographical collective feature to form more steady and firm division between enterprises, to advance professionalization. Then a large amount of intermediate products trade channels insular industrial agglomeration, make all kinds of Factors of production flow through products trade among industrial agglomerations. The paper econometrically analyses mutual interrelation between vertical decomposition and industrial agglomeration, approving that vertical decon position is one of the conditions of industrial agglomeration, indicating that mutual affection can improve economic effect through cumulating circulative effects. Third, the emergence of industrial agglomeration division means, first transport cost is low between industrial agglomerations for high transport cost may cut off intercommunion with outside. Second, transport cost can't be too low; otherwise it may cause divergence of industrial agglomeration, making industrial agglomeration advantage outflow, or even forming a new bigger unite market than the original wide-area industrial agglomeration. So, a right level of transport cost is an important condition for industrial agglomeration division formation.Fourth, Industry agglomeration is the competitive advantage of one region, which can not be copied by others, but how it happened is seldom issued. In this paper, based on the data of enterprises from cities in Yangtze-river delta, we analyze how industry agglomeration induces regional competitive advantage in both industrial and regional view. The result shows, there are three steps make industry agglomeration lock-in a region's competitive advantage: First, in high-level agglomeration, regional division among different industry agglomeration appears, which is brought by firms' spanning-region. Then, along with the regional division deepening and becoming stable, the industry agglomeration radiates its power, intensifies self-accelerated agglomeration and wins larger space of development. Finally, the accumulation cycle of such relations has been formed, resulting in the regional competitive advantage of agglomeration mutually triggered.Of course, limited to the academic quality of the writer herself, the paper is still exist a number of shortcomings. In this regard, the last part of this paper put forward the limitations of this study, as well as the thesis which is required in the future in-depth study.