Industrial Agglomeration Research Based On Cost Reasons

Nowadays, the world's industrial organizations are characterized by the rapid changes of elements, resources and labor divisions and the industrial agglomeration in a special area caused by economic globalization and information technology. The industrial agglomeration, ranging from Silicon Valley and 128 Road of USA to Zhongguan Village in Beijing and small enterprises agglomeration in Zhejiang Province, from high-tech industry to traditional one, has attracted more and more attention in aspects like cost saving and knowledge spilling and has become a powerful form to promote district economic development. The academic researches, however, still lag behind the practical developments. Taking China for example, though extensive, its researches got started later than other countries and lack systematization. What's more, such problems require deeper analysis in theory and continuous innovation in method as definition, cause, effect and scale of industrial agglomeration. Therefore, starting with the definition of industrial agglomeration, the paper uses a game model to analyze the cost reasons and explain its principle and course. Thus, it infers that there is scale restriction in development of industrial agglomeration. On this basis, it further explains the function of agglomeration effect in the course of industry agglomerating. Then, taking shoemaking agglomeration in Jinjiang City, Fujian Province as an example, the paper analyzes its effects concretely and brings forward valuable advices for its development. In terms of research method, this article combines dynamitic game model and static theory explanation as the analysis frame and does researches on facts by metrology. From this point of view, unlike the conventional ways of theory-only and post-analysis, this thesis explores basic problems in industrial agglomeration more powerfully by introducing mathematical methods to its analysis.