China 's Urban Manufacturing Industry Cluster Identification, Cluster Environment And Urban Growth

In this paper, we raise an approach of the city manufacturing industry cluster identification, and apply the method to the Chinese manufacturing industry enterprise data. Using the index of industry cluster strength measuring urban agglomeration economy dynamic externalities, we examine the effects of the urban industrial clusters environment on industry, cluster and city employment growth for the long run. We find that, at the initial stage of the industrial cluster policy implementation, the eastern coastal cities have the best domestic industrial development and management environment. Manufacturing industry distribution presented the obvious unbalance and significant industrial agglomeration phenomenon. At the same time, we also find that, the city cluster strength significantly affect the city employment growth. Better the urban initial industrial environment was, more conducive urban growth is. The fact that Agglomeration economy has the long-term impact of urban growth in the transition countries is verified. We propose, in order to have the city a long-term and sustainable growth, China’s urban industrial policy should focus on giving priority to the development of the local key core industry complementary industries, cultivating the industry business environment which is able to exert dynamic external economy, drive the whole city economy growth, and share scale economic benefits brought by the integration of regional economy. This paper provides the basis for China’s current urban industrial policy choice.