Agglomeration Of The Automobile Industry And It's Determinants In China

Industry agglomeration is a universal phenomenon in the process of industrialization, and is also a product of industry's development in a certain stage. The automobile industry which is the basis and key part of the economy plays a more and more important part in China's politics, economy and social life. So, there is of absolutely great practical significance for the development of the automobile industry and the promotion of automobile industry's competitiveness in our country to study the determining factors of Chinese automobile industry agglomeration.In this paper, we use the canonical parses and the empirical analysis together. First we analyze the affecting factors on auto industries' agglomeration on the basis of the above synthetically frame, These factors that affect industry agglomeration include labor, fixed assets, enterprises scale, transport cost, government and the base period's industry level. Then we form the index system of the industry agglomeration analysis. Then we analyze the realty of China's autobile industry agglomeration and autobile industry agglomeration determining factors in order to find the existing problem, accordingly to the conditions of China's specifically economic background.On the basis of the analysis above, we use the data of automobile industry in twenty-nine provinces from year 2000 to year 2004 as the samples, and use the indexes of these provinces to do Panel Data analysis. Then we establish the multiple regression model which evaluates the industry agglomeration of the automobile industry to test the different effect on the automobile industry agglomeration between the factors. Finally, according to the result of empirical analysis, we points out the most critical effecting factor on the automobile industry agglomeration of China and put forward some corresponding suggestions.