The Industry Agglomeration And Regional Economic Growth By Home Market Effect

With economic globalization and scientific and technological breakthrough, the earth becomes more and more small, more and more people to facilitate communication and exchange, gradually the entire human community to the "global village" change. However, this does not mean that the strength of the narrow space, in fact, the relationship between economy and space is increasingly obvious that under the action of various factors, economic activity in space is very significant uplift and subsidence. Economic geography is a long history of the subject, the ancient Greek historian Strabo author of "Geography", recorded by the natural, people, products, human and financial information, can be said that the earliest Western Economic Geography literature. In the last century, with the economic and social development, economic and geographical research should be combined in order to better understand one thing. Therefore, a separate economic geography from the geography of the sub-out, as an independent discipline has become necessary. German economists in this area have made an outstanding contribution to the pioneer, by the location of economic geography provides the theoretical support and momentum. After years of development, economic geography and applied fields in the theory made great progress in economic and social activities become essential tools for research.To the 90s of last century, represented by Paul Krugman, economist to pick up the economic geography of the method, using standard economic models to explain economic activity in space dynamics, they call their school as’New Economic Geography’. Of course, this new school was not immediately widely recognized, Many geography think the assumption that economic activity be quantified, will be neglect activities of complexity, and not with practice, lack of practical application. If you use these methods alone, would lose economic geography at a higher level of social philosophy to contribute to the practice of the opportunity to become a vassal of quantitative economics. Of course, this criticism is pertinent, but new economic geography for development of economic provided valuable weapons by nearly 20 years of development, new economic geography can be widely as theory and policy research provided thought and methods, in the regional level, industrial level and city level, the new economic geography through the concerns of the agglomeration, analysis of the economic activity between the spatial distribution, and thus deepen our understanding of economic laws.The new economic geography is the most important research and the agglomeration of economic activities, this phenomenon has always been the concern for scholars. Take for example Hirschman to describe the process of polarization effects, to more recent times; industry cluster is a hot issue. The new economic geography major departure from the monopolistic competition that brings economies of scale is the main factors affecting agglomeration, and use standardized methods to test the idea of economics. For the production process of agglomeration, the home market effect plays an important role. The home market effect is developed from the new trade theory, and refers to a relatively larger market country because such scale advantages, become a net exporter. From the industry perspective, this size advantage will expand its share of industry, making industrial agglomeration.In China, economic activities, uneven distribution in space, is very significant phenomenon. China’s major economically developed provinces are concentrated in coastal area and urban and rural economic gap become the more and more large. The aggregation of population and economic phenomenon, leading to the gap of regional economic and social development become the more and more large, is not conducive to a harmonious society. Therefore, many domestic scholars have tried to use the new economic geography theory and method to study the country a "block economic" causes and trends. This paper started from the home market effect, effects of hope on the local market of sorting out the theory and practice, analysis of the home market under the effect of agglomeration and regional economic growth. The main effect of the home market effect is the main factor to bring industrial agglomeration, and industrial agglomeration of regional economic growth will bring positive results. These three are mutually affect each other to promote the process, by deepening their understanding, help us in the future economic activity analysis, can be more successful control economic law for economic development to provide better analysis and advice.Chengdu is the capital of Sichuan Province, western China’s important economic and population center of the city, since the reform of urban and rural test area approved after the more rapid economic development. Reform is not confined to the city of Chengdu’s development, in early 2010, Chengdu and the surrounding seven cities signed a cooperation framework agreement of cooperation with other cities, to look relaxed to the economic region, in a broader space Chengdu’s industrial and urban planning layout. Chengdu economic zone is a typical single-core cities, Chengdu is the only large city in the economic area, attracting a large number of population and industry. In this paper, the more concerned is this market’s difference cause agglomeration because of the home market effects, then the Economic Zone on the implications? This agglomeration will form a good division of labor economic zone or because of agglomeration of small cities and rural areas, contraction in economic activity, thereby supporting the lack of their own industries, the "hollow" phenomenon.In this paper, under the home market effect, industrial agglomeration and regional economic growth analysis, the first comb through the literature and theory and review, was a good foundation. The reason which the home market effect cause agglomeration, is attributed four points, corresponding to three factors which were introduced three most representative study by economists, and combined with some real analysis of these factors and the agglomeration in reality the association. Then the economic zone of Chengdu actual case study found that industrial economic zone in Chengdu obvious effect of the home market effect, market size is an important factor in bringing industrial agglomeration. Moreover, agglomeration on the regional economy has obviously a positive pushing for economical growth. To every city, to their advantages, to attract characteristic industry; to the economy zone focus to gain advantage of economic growth, while the economic zone, effective in the industry division and distribution of regional economic growth and development also has a good result. The main content and structure of this paper is as follows:ChapterⅠis Introduction. This section describes the research background, purpose, meaning, ideas and frameworks.ChapterⅡdefines the concepts and literature review. This section of the home market effect, industry agglomeration, urban and rural areas were defined, and then sort out the relevant theory and research, is reviewed on its access to the theoretical basis for this article.Chapter III summarizes the reason for the home market effect of industrial clustering. This section on the impact of industrial agglomeration, the factors that brought about the home market effect is classified and divided into geographical and industry contacts on the industrial agglomeration was to bring theoretical and practical case study results, which for the economic zone of Chengdu later in the analysis of the establishment of a framework.Chapter IV is experiment test for industrial agglomeration and regional economic growth. The first part analysis of the status of development, from the reality of the development of Chengdu, Chengdu economic zone of the necessity to proceed to analyze the economic zone of Chengdu industrial and market structure, as this article describes a basic status. Then to measure industry concentration in Chengdu economic zone, accurate situation of the industrial agglomeration, in the end, through quantitative analysis of market size on the impact of industrial agglomeration, by the home market effects the impact on the industry, and then combined with other variables, industrial agglomeration index of the impact on economic growth, which are industrial agglomeration have a positive impact on economic growth, which can be basic conclusions, industry specialization and urban agglomeration has a positive impact on the regional economy.Chapter V is policy advice. By the foregoing analysis and research, this part gives five policy advices. Including the’guide division of industry in the region, strengthen professional in the city level’,’strengthen economic zone policy coordination, promote balanced development’,’industrialization promote the development of cities and towns, realized the rural and urban integration’, ’reasonable planning, and actively building infrastructure’,’To ensure the development of conditions, build a good Institution’...