Study On The Relationship Between Economies Of Scale And The Industrial Concentration Level In Northeast China

Geographical concentration of industries is the most significant characteristic of the current economic spatial structure. The geographic concentration of industries is mainly presented as industrial output or employment concentrating in a few areas, this is also the direct cause of some areas are more developed than others. Geographic concentration of industries may be caused by a few large because of the internal economies of scale or just because of resources, it also may be caused by a large number of small and medium-sized enterprises concentrating in a few regions because of external economies of scale. A large number of interrelated small and medium-sized enterprises agglomerating in few areas can form industry clusters.Before the reforming and opening up, Northeast China is the main industrial base in our country, a large number of industries concentrating here, which had led to a long period of prosperity of the whole economy of the northeastern region in China. But after the reforming and opening up, the industries especially the manufacturing industries in the Northeast China were in declining status. This caused the decline of the economy as a whole in Northeast China. The mainly features of the Northeast region are the slow development of industries and the whole economy, low economic efficiency. Now the declining of the manufacturing industries in the Northeast China is a problem not only in Northeast China, but also in whole China.Under the background of revitalizing the old industrial base of the Northeast, a large number of scholars of economics have studied the causes of the decline of the economies and the industrial economies in the Northeast China from all angles, and have put forward a number of important policy recommendations. However, their studies mainly depended on qualitative analysis, and they mainly looked for the causes of manufacturing recession from the perspective of the economic system, policy environment, resources, technological Innovation and so on. Their policy recommendations also focused on the economic reform, the industrial selection, the optimization of industrial structure, strengthening the technological innovation and so on.Based on the theory of economies of scale, this article mainly studies the relationship between economies of scale and the industrial concentration level in Northeast China through quantitative measurement of the economies of scale and the use of quantitative analysis method, and puts forward some relevant policy recommendations for the development of industrial economies in Northeast China. Through the analysis, we found that: the level of industrial concentration in the northeastern region of China is influenced by economies of scale and also by the limitation of market demand. These two factors are the causes of decline in industrial concentration and the whole economy in the Northeast China. So, to improve the industrial concentration degree and to improve the development level of Northeast China, we should also pay more attentions to these two aspects.The main structure of this article includes the following five parts: The first part is the introduction. The second part is about the economies of scale and the relationship between economies of scale and the industrial concentration. The third part is about the levels of economies of scale of the 26 industrial departments in Northeast China. The fourth part analyzes the influences on the industrial concentration level caused by the economies of scale through the use of quantitative analysis method. The fifth part is a summary of this article, and it also includes some relevant policy recommendations.