Positive Effect To Regional Economic Development Of Enterprise Clusters: Theory And Empirical Study

Enterprise cluster is not only the focal point of Industrial economics, Spatial economics and Geography, but also showing robust energy.Based on the analysis of literature review, the author summarized the key factors through which enterprise cluster put effect on regional economy. These factors include agglomeration, human resource, knowledge spillovers and brand and advertisement. Enterprise cluster can boost regional economy by multiplier effect, improve competitive ability of regional economy through influx of factors of production from outside region caused by agglomeration effect, improve the quality of development of regional economy by upgrade and pervasion of technology upgrade, and promote economic benefits of regional economy by synergy effect.We take zhejiang and henan as examples because enterprise cluster grow relatively faster in zhejiang while slowly in henan. First, by using location quotient, we discloses the existing of enterprise cluster.Then, agglomerate index is used to find agglomeration of industry. Finally, Granger Causality Tests are used to examine the causality between agglomerate index and development of economic. The paper computed location quotient and agglomerate index each year by using of the data of 28 industries from year 1995 to 2007 in ZheJiang and HeNan province respectively. The data is from china statistical yearbook ,zhejiang statistical yearbook,and henan statistical yearbook. Then got the conclusion based on the outcome of Granger Causality Tests.Further, some advices are given to the development of enterprise cluster in HeNan based on the comparison of factors such as location quotient and agglomerate index in ZheJiang and HeNan province.