Study On Industrial Agglomeration, Congestion Of Production Factors And Agglomeration Suitability

Manufacturing is the backbone of the industrial economy of Zhejiang provinceand in the Delta region of Yangtze River, Zhejiang has played an important role,therefore, the study on industrial agglomeration for the manufacturing industry ofZhejiang is particularly necessary. Previous studies suggest that industrialagglomeration can produce economies of scale and economic benefits, but at the sametime, industrial agglomeration process is constantly accompanied by gradualconcentration of factors of production. If the cost of production factors such as labor,land prices are rising, it may weaken the industry’s profit margins of theseagglomeration; On the other hand, if inter-regional industry is highly concentrated, itmay cause duplication, resulting in excessive competition and bring economic benefitsreduced. How is Zhejiang manufacturing agglomeration? It’s worth to study zhejiangmanufacturing agglomeration.In this paper, there is a summary review for the theory of agglomeration, factorcrowded and agglomeration suitability, etc, and using the relevant indicators calculated,through the relationships of composite scale index and profit and the estimates ofmanufacturing industry’s DEA efficiency, make a judgment for the agglomerationconditions and the sub-sectors agglomeration suitability of overall manufacturingindustry of Zhejiang Province; finally, integration the results to determine whichindustries are excessive agglomeration, appropriate agglomeration or promisingagglomeration. The results show that although the overall agglomeration level ofZhejiang shown a downward trend, some traditional industries such as textiles, textileand garment industry is very high degree of concentration in China, but for ZhejiangProvince, the degree of concentration of these industries are not high, instead, they arepromising agglomeration throughout Zhejiang province, the degree of concentrationalso need to reinforce. By contrast, the capital and technology-intensive industry ofgeneral equipment manufacturing, communications equipment manufacturing,pharmaceutical manufacturing and agricultural processing industry, they are theexcessive agglomeration industries. Excessive concentration region is basically inNingbo, Wenzhou and Shaoxing areas which have a relatively high manufacturingoutput. This paper presents different policy measures for the different concentration levelsof industries. Excessive agglomeration industries will bring efficiency losses and needfor industrial upgrading, this according to some industry upgrading theory, and thispaper simply gives the areas of industrial transfer; promising agglomeration industriesneed to do a model of agglomeration forewarning to determine whether it is about theextent of excessive agglomeration in the industry, whether need to continue to increasethe scale of industrial agglomeration; appopriate agglomeration industries needindustrial transformation and upgrading to make the industry sustainable development.Finally, propose the article’s conclusions, the lack of research and future researchdirections.The innovation of this paper is that, there is a systematic and comprehensiveanalysis for the conditions of agglomeration of the whole manufacturing industries; anda comprehensive judgment for the level of agglomeration of different industries andregions. And for different degree of industry agglomeration this paper advancescorresponding measures to accelerate industrial development.