The Research Of China’s Labor-Intensive Manufacturing Agglomeration

Since Krugman put forward the theory of new economic geography, industrial agglomerationhas been the areas of focus of the regional economics research. The research of the industrialagglomeration in China began in the early21stcentury, mainly in the manufacturing sector andconfined in the20-digit IDM. In fact, different categories of industry agglomeration have differentchanges in trends and influencing factors. China is a populous country. The labor factor in Chinais abundant as well as low-cost, and has a comparative advantage in the labor-intensive exportindustry, which is of great significance to the development of the national economy. With China’seconomic growth, the labor-intensive manufacturing space layout is concerned. The existingresearch does not resolve this trend of development and influencing factors.To solve this, this paper attempts to adopt the method of combination of theoretical andempirical analysis. By combing industrial agglomeration theory and literature, we try to inspectthe two-digit and three-digit movements in labor-intensive manufacturing and build econometricmodels based on panel data. We made an empirical test of the impact factors of the labor-intensivemanufacturing cluster to provide a reference for policy makers.Through measure agglomeration degree of labor-intensive manufacturing industry in ourcountry, analyze the variation characteristics, and discovery that since2003China’slabor-intensive manufacturing industry had a clear agglomeration trend. Two-digit industry andthree-digit industry is highly concentrated state. But the industrial agglomeration’s degree was ofvery different. And the most labor-intensive manufacturing cluster extent has shown a downwardtrend, the industry has begun gathering to the dispersion. The eastern provinces, the industry hasbegun to spread within the eastern region and other regions. The advantage of the central andnortheastern regions of the development of labor-intensive industries is gradually accumulated.Western areas densely populated provinces degree of specialization has increased, furtherweakening of the sparsely populated areas of the degree of specialization. Some provinces andregions competitive industries in the professional level have increased, growing legitimacy regional division of labor.According to the results on the15two-digit industry labor-intensive manufacturing in2003-2010panel data, we have come to the sharing of labor, transportation costs and opening to theoutside world are important factors of the labor-intensive manufacturing cluster. And on the basisof the theory and empirical analysis, to adjust China’s labor-intensive manufacturing space layoutand improve industry specialization of policy recommendations, we put forward the followingpolicy recommendations. Firstly, promoting the free flow of labor; Secondly, to strengthen theconstruction of transport infrastructure; Third, to further promote opening to the outside world.