Agglomeration Of Chinese Industry: The Distribution And Important Factors

The paper studies the distribution of agglomeration of Chinese industry and the factors important to its distribution. On the one hand, We attempt to address the following questions: Why are some industries concentrated in a few locations while others scattered across many provinces? What decides industrial agglomeration or dispersion. On the other hand, We attempt to investigate the existence of agglomeration of Chinese industry, the spatial concentration of Chinese industry, the region of agglomeration and the important factors to agglomeration of Chinese industry.The thesis takes review and comparative study on the agglomeration theory and its development in history, We conclude the basic factors of industrial agglomeration and its operating mechanism. Then, We investigates spatial concentration of Chinese industry using the data in 1990, 1994, 1999 and 2002. It was found that evident agglomeration exists in Chinese industry, that Chinese industries have become more geographically concentrated following the economic reform, and that many of Chinese industries were highly geographically concentrated in several coastal regions. An econometric analysis further supports scale economics, FDI, local protectionism and transaction cost are important factors to agglomeration of Chinese industry.