Study The Relationship Between City Agglomeration Effect And Economic Growth From The Perspective Of City Agglomeration With The Case Of The Yangtze River Delta

Agglomeration is one of the driver of economic growth, the mostsignificant and complicated is the agglomeration of urban economicactivities among many agglomeration. The essence of the formation anddevelopment of the urban is the process of the continuous gather anddiffusion of their economic activity, the agglomeration effects has made asignificant contribution to the city’s economic growth in the process. Inrecent years, agglomeration effects of the city has became an importantsubject in urban economics and regional economics, and accompanied bythe rise of spatial statistics and spatial econometrics research tool, theresearch of the agglomeration effects has developed to the level of theinner city comprehensive agglomeration from the agglomeration ofelements, industrial and enterprise.Throughout the study of urban agglomeration effects by the Chinesescholars, mostly concentrated in China’s provincial comparative analysisresearch. And judging from the most research of the urban agglomerationeffects in our country, the urban agglomeration space radiation range issmall, the contrast between the provinces abandon externality betweenmany cities, can not fully reflect the true meaning and effect of the urbanagglomeration. So, this article aims to make a systematic analysis aboutthe influence of city agglomeration on economic growth from a certaineconomic zone, and to study the internal effects of urban agglomeration in a particular perspective. From the perspective of the development ofthe economic region in China, the overall level of development of theYangtze River Delta city group ranks among the highest in China, as theepitome of urban agglomeration, study the relationship between the urbanagglomeration effects and the economic growth, it will have a very goodreference for the research of other relevant cities group.This paper first introduced the basic model about the urbanagglomeration effects and the economic growth, included New EconomicGrowth model and Center Periphery model. Then this paper analyzed themechanism of urban agglomeration effects on economic growth from twoaspects, in which the market mechanism promote economic growththrough scale economy and deepening of labor division, the non-marketmechanisms role in economic growth through knowledge spillovers andpreferences spillovers. Finally, this paper used the panel data of16citiesin the Yangtze River Delta from1998to2010, used Carlino model tocheck the existence of the Yangtze river delta urban agglomeration effect,found that the apparent presence of the Yangtze River Delta cityagglomeration effects, and then demonstrated its relationship witheconomic growth, found urban agglomeration played a significant role inpromoting economic growth.