Industry Agglomeration And Its Influence On The Dual Structure Of The Urban And Rural Areas

Accompanying with the acceleration of industrialization's course, the economic level is continuously increasing in China, people's living status is increasingly improving, and the country's integrated strength is also continuously enhanced. Whereas, the same time as the economic society's increasingly developing, some abuse left behind by the original pattern of economical development are continuously exposed, which have negative impact on the growing development of our economic society. The most serious is that there is still dual structure of the urban and rural. The significant difference between urban and rural restricts the free flow of resource, the talent and technique between the city and the countryside, it also restricts the sufficient exertion of urban economy's diffusion effect, hinders the course of rural industrialization and modernization. In a word, the existence of dual structure of the urban and rural hinders the growing development of our economic society.The government has got little effect on adjusting the dual structure of the urban and rural these years. Accompanying with a great deal of industry agglomeration community's appearance in eastern inshore areas recent years, these areas have got unprecedented development. The rural industry's development pattern changes hugely. Many small towns have been changed to specialized production agglomeration areas. The difference between urban and rural is increasingly shortened and the economy of urban and rural is continuously amalgamated. The successful practice of eastern inshore areas sufficiently proves that the new pattern of industrial organization, industry agglomeration, can change the condition of industry decentralization in laggard areas effectively, and can facilitate the change from the pattern of laggard industry to the pattern of modern industrial development. It also can advance the level of rural industrialization, impulse the development of rural economic society, and realize the harmonious consolidated development of urban and rural economic society finally.This paper is established in discussing the change of dual structure of the urban and rural at point of industry agglomeration, and using lots of data and simple econometrics models to demonstrate the effect. This paper illustrates the development status quo of industry agglomeration and dual structure of the urban and rural in mainland firstly, which indicates the industry agglomeration mainly exist in eastern areas, the Midwest areas'industry agglomeration develop slowly, and the industry agglomeration in our country are mainly specialization agglomeration which mainly undertake conventional industrial production. Then through analyzing effect mechanism of industry agglomeration, illustrating how the industry agglomeration effect on the income gap in urban and rural areas and the level of urbanization rate, we get to conclude that industry agglomeration is propitious to shorten income gap in urban and rural areas and to enhance the rate of urbanization. We use lots of data and econometrics models to demonstrate the conclusion and make sure its correctness. We indicate that there is imbalance problem in the development of industry agglomeration among respectively areas at present according to the testing results. Based on the results, we suggest that the government need to improve the layout of industry agglomeration, adjust the structure of countryside industry, optimize the outside environment of industry agglomeration's development, and realize the sustainable development of industry agglomeration.