The Effect Of Industrial Agglomeration On Industrialization

Industrial agglomeration (IA) is the essential source of industrial competitiveness, and it is an inevitable result when industrialization reaches a certain level under market-oriented economy. As a kind of efficient regional industrial organization form, IA is one of the most important means to realize industrialization in China and is significantly positive to industrialization. Under the background of proposal for new road to industrialization and scientific concept of development, it is both theoretically and practically important to discuss IA's effect on industrialization of Jiangsu Province.At the every beginning the related theories and current research status at home and abroad between IA and industrialization are reviewed. Then the characteristics of industrialization and IA in Jiangsu Province are analyzed systematically. On the basis of it, by constructing panel data model between industrialization index and IA index and regression analysis from the viewpoints of whole province and three regions separately, the effect of IA on industrialization is given in detail. The result shows that on the whole province level promotion of geographical concentration degree has a significant positive effect on industrialization, while localization economy's effect on industrialization is not obvious. Urbanization economy is significantly positive correlated with industrialization level. Meanwhile, on the region level, geographical concentration degree is significantly positive to industrialization in the south, negative to middle and not significant to the north. The parameters of localization economy in the three regions are all positive but not significant. Urbanization economy is significantly positive to industrialization both in the north region and middle region, while significantly negative to industrialization in the south. At the end advices are given according to the empirical results on how to enhance the industrialization level of Jiangsu Province.