Research On Industry ClusterAnd Factors Of Heavy Chemical Industry In Chinese Coastal Region

Industrial cluster is representation of industry optimized collocating. When manyfirms concentrating in a region, external economies will appear.And, industrialproductivity and competitive ability will also be improved for the reason of externaleconomies. The trend of the heavy chemical industry moving into coastal clusterbecomes prominent after the21st century. This shows that the spatial distribution ofheavy industry in the past, which industrial structure is almost same in most provincesaccordingly, has been moving into coastal cluster. The purpose of this paper is tostudy industrial cluster of heavy chemical industry in coastal region empirically, toexamine if there is cluster trend of heavy chemical industry location, to seek for thefactors influencing the industrial cluster. In the end of this paper, a few suggestionsare made to help the development of heavy and chemical industries in coastal areas.The object of the paper is15heavy chemical industries. Under the guidance ofwestern cluster theory, using modern econometrics method, the paper studies heavychemical industry cluster empirically. By applying the location quotient and spaceGini coefficient, this paper estimates the degree of industrial cluster of heavychemical industries in coastal areas and analyzes its cluster character from the levelsof regions and industries. The paper uses the multiple regression analysis of paneldata model to examine the factors influencing industrial cluster. The institutionalfactors are taken into account sufficiently when designing the10regressionindependent variables.The new idea in the paper is that the main factors influencing heavy chemicalindustry cluster in coastal region are found through regression analysis, the meaningof industrial and regional development policies is provided in the end of the paper.The results of empirical analysis can be described from these aspects: first,this clustertrend of heavy chemical industry in the entire coastal areas has been formed; thesecond result is that it shows similarity in industrial structures and the severity of industrial assimilation in the Bohai Sea region, the Yangtze River Delta region and thePearl River Delta region, but their inter-regional division of labor has appearedinitially; the third result is that there are many factors influencing the industrialagglomeration. The main factors are local protectionism, new economic geography,comparative advantage.The lock-in effect and the self-enforcing effect of industrialagglomeration is remarkable, the larger of the industry’s scale and the more number ofthe firms, the easier of industrial agglomeration. The average scale of firms also hasthe positive relation with the industry specialization level in a region. However thereisn’t evidence supporting the educational level and renovation ability can improve theindustrial agglomeration.