Research On Regional Industrial Division Mechanism

The global economy has already showed the tendencies, as regional industrial division and regional economic integration. Industrial cluster,network of specialization,industrial chain division and outsourcing have already become significant components of regional economic development. Practices show that reasonable matching industrial division and cooperation network are the foundation and motion of the sustained regional economic development. The organization and innovation of product elements in regional economic are renewable and ectodermic, which promote the continuous optimization of regional industrial structure and distribution, cause specialization among the cities, avoid unnecessary duplication of construction and waste of resources and form the biggest social,economic,ecological benefits and intensive utilization of resources.However, the "Feudal economic" has impacted negative influence on regional industrial division system in our country for a long time, which gives rise to convergence of regional industrial structure, and seriously constrains the regional economic efficiency and the effective allocation of resources. These issues, as the impacts to achieve China's economic faster development, have attached the highly attentions from both government and academia. So there are strong theoretical and practical significance to reveal the regional industrial division mechanism, and further to find a solution to the problem of regional industrial division and put forward the corresponding countermeasures.The paper selects central-area of Zhejiang as research target, comprehensively adopts both theoretical and empirical methods to analyze regional industrial division mechanism to reveal regional industrial division mechanism, by combing with relevant theories. The paper first concludes the theories of regional industrial division and the regional industrial division elements system, and then makes an empirical research by calculating central-area of Zhejiang's location quotient and Krugman specialization coefficient and using model analysis method.On the basis of the theoretical and empirical studies, it is considered that regional industrial division mechanism is functioned by five mechanisms, which include deepening mechanism of endogenous comparative advantage, restriction mechanism of transaction cost, industrial diffusion mechanism of following bellwether, expanding mechanism of infrastructure and leading mechanism of policy. Specifically speaking, the evolution of these five mechanisms impacts on the exchange of the product factors, such as fund,technology,product and labor, and promote dynamic adjustment of the regional industrial division system. Moreover, endogenous comparative advantage is the key factor in the system which determines that the regional industrial division has endogenous and dynamic characteristics, and the transaction cost determines the border of industrial division network, which is the main restraint factor in regional industrial division system.Finally, the paper puts forward the following policy recommendations: central-area of Zhejiang should base on factor endowments and industrial development stage, clear leading industries develop industries in line with endogenous comparative advantage, support matching industries to accelerate the technological upgrading of industries and cultivate scale of economic and core competitiveness. Furthermore, by integrating resources and guiding the rational flow of product elements in region, central-area of Zhejiang should rely on existed dominant industrial clusters, strength contracts with surrounding areas concerning policies and infrastructure, to optimize the regional industrial division system and achieve dislocation competition.