The Financial Synergy Research Of The Textile Industry Cluster

With the rapid development of the economic globalization and informationtechnology, the Industrial Clusters, as the most unique and competitive forms ofeconomic organization in the world, has become an important direction of thedevelopment of economic organizations nowadays, which also is a research hotspotof various disciplines. The Industrial Clusters’ specialized division of labor andcommunity synergies is showing a strong competitive advantage, that is why it gainsmore and more attention and becomes an important organizational form of enterprise,industry, and region competition. Gradually, some competitive Industrial Clustershave been shaping their forms. Due to the geographical characteristics of IndustrialClusters, the flow of funds inside the group enterprises breaks the limitations of theprevious internal funds flow cycle, and constitutes the cycling impact in a largerscope. Furthermore, financial synergies, which can be interpreted as a "1+1>2"effect, meet the needs of the financial analysis of industrial cluster.The textile industry, as the beginning of the Industrial Revolution, is animportant sector of our economy, which is playing the leading role of Zhejiang,Guangdong, Shandong, Jiangsu, Fujian and other provinces. After our countryjoining the WTO, the textile industry is facing the fiercer competition, but IndustryCluster is a more efficient form than single enterprise, it can improve the efficiencyof resource use. China’s textile Industry Cluster has begun to stand its scale, and isplaying increasingly important role in promoting regional economic. Hereby,promoting the formation of Industrial Clusters, and the upgrading of industrial clusters, is of great significance for the enhancement of the competitiveness of thetextile enterprises.This paper adopts a combination method of theoretical and empirical analysis.First of all, explaining the theory of Industrial Clusters, which includes externaleconomic theory, the theory of agglomeration economies, transaction cost theory, neweconomic geography theory, and the new competitive advantage theory; in the aspectof financial synergies,mainly analyzing application of the theory. On this basement,elaborating the formation mechanism of financial synergies and its performance inIndustrial Clusters, providing the basis for the proposed research hypotheses andtarget selection. Secondly, the analyzing of the current situation of China’s textileIndustry Cluster, including the textile industry cluster development as well asdescriptive statistical analysis of corporate finance synergies within the textileindustry,and use the SWOT to analyze it. Finally, I will do the empirical study, whichincludes extracting the compound indicators of financial synergies through themethod of factor analysis, using descriptive statistical analysis, correlation analysisand regression analysis to study the connection of concentration and financialsynergies, comparing the analysis of financial synergies within and outside industrygroups. And this paper is designed to render the textile industry cluster membercompanies make better use of financial synergies, and promoting the industryupgrading. Through empirical research，we found that industrial concentrationfinancial synergies effect can reinforce each other mutually, industry concentrationhas brought financial benefits of synergies and the exist of financial synergies attractfurther agglomeration of related industries.It is this two-way role mutual promotionthat makes industrial cluster develop more reasonable and scientific.