The Study On The Function Of Local Government In Industrial Cluster's Formation

Nowadays, with the sustainable development of world economy, it plays a vital role in growth of economy in a particular way, and promotion of regional economy. And industrial clustering is becoming the main theme of global industrial development.However, it is impossible for industrial clusters to get sustainable development only depend on market and enterprises without local government's guidance and supports, which is decided by the defect from market inherent mechanism and the especial situation of China. It is extremely necessary for local government to get involved in the field that market is infective. Therefore, analyze deeply into what function should local government have in the process of industrial clusters development and how should local government show the function will have the theoretic value and realistic meaning.On the basis of detailed review of literature, this paper search the function of local government in the industrial cluster's formation through theoretic analyze, model analyze and example analyze. The study in this paper mainly contributes in the following 5 field:(1) Analyzing the function of the local government in industrial cluster's formation on theoryOn the basis of basic theory on mechanism of cluster's formation and analyzing in the necessity of local government marked effect in the industrial cluster's formation, this paper summarizes local government's main measures, and explain that it can reduce production cost for those measures directly or indirectly.(2) Setting up enterprise' s location model about local government marked effect in the industrial cluster's formation There are two models in this paper, which are enterprise's location basic model and enterprise's location model, and enterprise's location model expands enterprise's location basic mode. Model consists of market demand function, production cost, logistic cost, agglomeration effect and cost effect and so on. This paper focuses on agglomeration effect and cost effect.(3) Analyzing and explain the relationship between agglomeration effect and cost effectBasic on model, this paper study the relationship between agglomeration effect and cost effect in the same cluster and the different cluster. Furthermore, it provides theoretical evidence for local government with to take different measures in different period of cluster's development.(4) Elaborating the problem embeddednessAnalyzing enterprise's location basic model and enterprise's location model, this paper conclude that it exists very serious problem embeddedness for the government-leading's clusters, which accord with others. This paper provides corresponding suggestions for the defect from inherent mechanism.(5) Taking the cartoon industrial cluster of Shenyang as the exampleUsed the industrial cluster theory for guiding, this paper takes the cartoon industrial cluster of Shenyang for example; analyze its overall survey, at the same time, focusing on the Shenyang government's important role in the formation of the cartoon industrial cluster.