The Research On Industrial Agglomeration Effects Of Shandong Based On Urban Functional Division

Cities emerged in the development of societal labor division. The spatialagglomeration and interdependence of some cities lead to a relatively completeurban agglomeration. At the beginning, labor division mainly takes the form ofsectoral specialization. Different cities produce products at different technologicallevels. With further development, it’s impossible for the traditional economicpattern to coordinate complicated regional economic relations and interest conflicts.Moreover, the division of the global value chain caused by the economicglobalization, under the market mechanism and government guidance, brings aboutgreat changes in the economic links among the world’s major urban agglomerations.The urban functional division gradually takes the place of sectoral specialization.Central cities focus mainly on management, research and development, while thesubordinate cities on the manufacturing function.Shandong has a relatively short story about urban agglomeration. By now, ithas formed three urban agglomerations, namely the Provincial Capital UrbanAgglomeration, the Shandong Peninsula Blue Economic Zone and the SouthernEconomic Zone. Its17cities have their own industrial focus, initially forming acertain scale of industrial agglomerations. But certain problems exist, such as toomuch influence by administrative division, agglomeration at a low level, weak ineconomic complementarity and agglomeration effects.This dissertation begins with an analysis of the realization of urban functionaldivision, followed by a discussion of the profound logical relations between urbanfunctional division and agglomeration effects. Based on the empirical analysis ofthe data reflecting the functional division of17cities of Shandong Province andagglomeration effects, it is found that17cities’ functional division index andspecialization index rise steadily and the diversification index is on the decline; thediversification level of regional key cities in Shandong Province is higher than theaverage and the peripheral cities which have obvious characteristic of specialization.In addition, the empirical analysis shows that the influence on the agglomerationeffects of the variable of functional division is positive and the influence is on therise. But the extent of the influence on three urban agglomeration is not the same. Inaddition, the influence on the agglomeration effects of cities of different levels bythe division of specialization and diversification varies, with peripheral citiesbenefiting mainly from specialization and central cities from diversification. So theinfluence on the agglomeration effects by diversification depends on the cities’functions and levels in urban agglomeration. Based on the research above, this dissertation comes to the conclusion that thegovernment should learn from the experience of developed countries and focus onthe positive influence on the agglomeration effects by the urban functional divisionand improve the level of economic integration to promote the rapid development ofShandong urban agglomeration. Different cities should take into full account thedifferent levels, locations, resource advantages and industrial structures and makefull use of their own characteristics and advantages. Different cities shouldundertake the corresponding economic functions through the reasonable functionaldivision and realize the complementarity and dislocation development.