A Research On Xinjiang’s Industrial Agglomeration And Export Trade

With the development of economic globalization, labor division and collaboration, thephenomenon of industrial agglomeration emerges all over the world. Industrial agglomerationis often accompanied by the prosperity of its export trade. According to New Trade Theoryand New Economic Geography, industry agglomeration can effectively and quicklyspecialized, centralized and enlarge the scale of the industry and its competitiveness, so as topromote the development of its export trade. There is a mechanism called Home MarketEffect that industry agglomeration takes effect on export trade development.Most of China’s manufacturing industry agglomeration emerged around the Pearl Riverdelta and Yangtze River delta region, at the meantime, export trade is booming. However, thedevelopment of industrial cluster and export trade in western inland provinces, especially inXinjiang autonomous regions is relatively poor. The "Twelfth five-year" period is the crucialtime for Xinjiang to develop its industry agglomeration and export trade.According to the analysis of the characteristics, opportunities and challenges ofXinjiang’s export trade and industrial agglomeration, I designed a regression model to testifythe correlation between industrial agglomeration and export trade. The result shows that thereare five sectors of the industry, which shows significant positive correlation betweenindustrial agglomeration and export trade. According to home market effect and factorendowments comparative advantage theory, I designed another regression model to testifywhether there exists home market effect among Xinjiang’s industry. The result shows thatseven industries hold significant home market effect. Here are some suggestions for Xinjiangto further promote the development of its industry agglomeration and export trade. Thegovernment should play a leading role in Xinjiang’s industry agglomeration development. Weshould rely on local resources, combine with Xinjiang’s traditional advantage industry,cultivate and attract talents, complete the construction and development of industrialagglomeration zone, develop and implement policy and measures to promote the consumptionof Xinjiang.