A Study Of The Influence Of Urban Industrial Specialization And Diversification On Steady Economic Growth

In recent years, the uncertainty of the world’s economy is getting more and moreserious.China’s high growth rates of economy is facing many treme ndous cha llenges.Faced with the grim economic situation at home and abroad, the government hasmade "steady growth, trans fer mode, adjust structure " an urge nt task of economicwork. Long-term steady econo mic growth sho uld to be healthy, while a soundecono mic structure is needed. In this paper, based on the theoretica l effects ofindustria l specia lization and diversification on the city’s economic developme ntmecha nis m, choosing2002-2011Natio nal261above prefecture le ve l cities’ data assample, we select the relative specia lizatio n index and the entropy index as measuresof these two industrial structures’ indicators, and the latter is divided relateddivers ification and unre lated divers ification into two parts. We use Chinese industria lenterprises database to compute these ind icators, build econo mic growth, economicfluctuation and e mplo yment fluctuation these three models, test the effects ofdifferent industria l structures and exa mine synergies of industria l diversification andurban sca le,and test the causal relatio nship between economic growth and economicfluctuations. To further investigate what d ifferent effects ind ustrial specia lization anddivers ification mak ing on economic growth a nd stability o f c ities in d ifferent re gionsand of d ifferent scales,we d ivide the samp le cities into three kinds by the ir location:east, central a nd western, and another two k inds by the ir populatio n: b ig c ities andsma ll cities,the n test the above models separately. Be low are conc lus ions:First, the majority of our cities do not get economic growth mo mentum fro m avariety industria l structure, but the diversity and size of cities have a synergistic rolein promoting econo mic growth; second, diversification o f the economy can promoteecono mic growth in b ig c ities, and is conduc ive to the stability of economic growthin cities of all s izes, while med ium and sma ll c ities rely on specia lized economic tospur econo mic growth, specia lization industry structure is also bene ficia l to theemp loyment stability; third,in eastern region,divers ified industria l structure isconduc ive to econo mic growth, also mak es a significa nt contributio n to the stabilityof the process of econo mic growth and emp loyme nt. To central region, by contrast,specia lization is more advanta geous to stable economic growth. To the western c ity,specia lization is conduc ive to economic growth, but can bring economic fluctuations;fo urth, economic fluctuations and emp loyment vo latility ha s a significantnegative effect on econo mic growth, in turn, economic growth can reduce economicvolatility, but not conduc ive to the stability of e mplo yment. Based on the abovefindings, comb ined with the deve lopment of the real situatio n, the paper presentsseveral policy recomme ndations at the end.