Economics Analysis On Industrial Agglomeration And Small Town Development

The Small Towns play a basic role in China's urbanization and can't be substituted by any other factor. Small towns are not only the bound of the urbanization, but also the forerunner of the modernization of the rural and the harmony of the relationships between cities and rural areas. The development of small towns is mainly promoted by the development of township enterprises. Since from reform and opening, the township enterprises have contributed greatly to the development of small towns, but recently, along with the all-around atrophy of the township enterprises, that is, the dynamical factor of development in small towns decay, the urbanization has been influenced and taken on the tendency of pace slowing.At present, the key of the urbanization is to forge the system of the dynamical factor. Though introducing industrial agglomeration, which is a new industrial organization form having comprehensive competitive power to the development of small towns and discussing the organic link between industrial agglomeration and the development of small towns, the mechanism of the dynamical factor of development in small towns try to be forged. Firstly, basing on the theories in and out of China, the thesis give a summary of correlative theories concerning small towns and industrial agglomeration and show its path.Secondly, the thesis began to analyze the dynamic of the development of small towns, for industrial agglomeration amplifying small town scale,public goods,technology innovation and market, it is pointed that industrial agglomeration is the main dynamic of small towns in now days. According to labor and capital flowing mechanism, it is testified that industrial agglomeration can promote the development of small towns by setting a economy model in factor flowing angle. At the same time, basing on agglomeration producing scale economic,scope economic,allocating efficiency and specialization , it is testified that industrial agglomeration can promote the development of small towns in economic effect angle.Thirdly, because of the development of small towns producing advantage condition to industrial agglomeration and offering resources,public goods and institution environment, the conclusion can be drown that the interaction and interplaying mechanism exists between industrial agglomeration and the development of small towns. After understanding the interaction and interplaying relationships, it is analyzed specifically according to development history,international comparison and interplaying effect and it is concluded that district economic can be promoted by positive interaction effect in rational scope resources and environment supporting.At last, basing on the fact of Shanxi Province, the thesis analyzes cast industry in Qingxu County by econometric method. It is testified once more that interaction and interplaying mechanism exists literally between industrial agglomeration and the development of small towns, and Issues and measures are pointed out in small town development.