The Agglomeration Effects Of Central Yunnan Region

Based on the actual situation of the Central Yunnan Province, this paper makes a preliminary study on the growth effect of agglomeration. The general contents and logical order were as follows:First of all, this paper makes a literature review on the core issue.Through theoretical and empirical research results of foreign literature, we found there were not forma unified understanding in terms of agglomeration of economic development has positive effects. Part of the domestic surveries results, for the central area of Yunnan Province, simply started from the perspective of spatial economics research literature was not too much. The existing literature most from the point of view of the classical theory of regional economics and human geography.Secondly, the paper introduced the formation mechanism of agglomeration in theory. The analysis results showed that the division of labor was the source of agglomeration, and agglomeration was the spatial organization form ofthedivision of labor.The development of agglomeration will further promoted the deepening of divisionof laborand the development of economy. However, with the development of the division of labor, transaction costs will rised. Agglomeration of economic growth from the empirical failured to forming a unified understanding.Then,according to the framework of spatial economics, a spatial economics model was established to indicating that the model of several key variables were how to interacting and influencingthe agglomeration, which is characteristic of spatial economics analysis model At the same time, it also provided a basis for the selection of explanatory variables and mutual confirmation.Finally, based on the theory of spatial economics and the actual data of Central Yunnan Province, the paper made an empirical test of the proposition of agglomeration and growth. Results showed that agglomeration does have a positive effects in the Central Yunnan Province. For the relationship between growth and agglomeration in the Central Yunnan Province, it has its unique characteristics and needed a further studied.