URBANIZTION Manufacturing Industry Agglomeration Effect

With the integration of global economy since the industrial revolution, the urbanization level of the world has been increasing rapidly. Urbanization as a means of economic development has welcomed more and more academic attention. Comparedwith the other countries in the same developing period, China’s urbanization is still relatively backward. On the other hand, due to the slowdown of the global economicgrowth, the export-oriented economy in our country has been largely shocked by policies like trade production and exchange rate fluctuations. Urbanization plays an important role in promoting the economic development during the industrial transformation period in China. Industry aggregation, a popular phenomenon throughout theworld, is the common law for industry development. The key to the core competence of a country or an area lies in the industry aggregation. Unlike those developed countries, great gaps exist between the low-end and high-end manufacturing industriesin China, and the national industry aggregation level remains low.Urban development is accompanied by the process of the aggregation and improvement of industries. From the macro perspective, industry aggregation is the motive factor of urbanization. Since the industry aggregation is the geopolitical phenomenon in the space, the industries among regions interact on each other. Similarly, the interaction of cities among regions results in urban agglomeration. As another increase pole, urban agglomeration influences on the industry aggregation and urbanization. With the development of spatial economics, the spatial factor has been a hot subject in the recent years. The empirical research on urbanization and industry aggregatio n has gradually taken spatial effect into consideration. Manufactory, as an importantcomponent of industry, promotes the development of urbanization. Manufactory can be divided into the low-end and the high-end manufacturing industries according to technology, creativity and enterprise organization models. It is obvious that the two components of manufactory differ from each other in their contribution to the urban development. But few scholars have done researches on this problem.This dissertation analyzes industry aggregation and urbanization separately fromthe theoretical aspect and explores manufactory and its promotion of the division ofthe low-end and high-end manufacturing industries. Based on the theoretical studyon the interaction of regional manufactory and urbanization, the dissertation carriesout an empirical research on the urbanization data of30provinces and cities in China as well as the data of industrial output of28manufactories in these areas. By using the spatial panel model, the dissertation studies on the spatial effect of urbanization, the influence of the aggregation regions on regional urbanization, the promotion of manufactory on urbanization and the impact of dividing low-end and high-end manufacturing industries. According to the results, the dissertation proves that in Chinathe manufactory aggregation is outstanding and that the urbanization level is unbalanced among regions. It is also discovered that the manufactory aggregation promotes urbanization, that the aggregation effect of high-end manufacturing is better than that of low-end manufacturing, and that the high aggregated regions promote urbanization while low aggregated regions stubborn urbanization.