The Study On Wenjiang’s Flowers And Plants Industrial Agglomeration And Enhancing The Level Of Industrial Agglomeration With Countermeasures

Since World War II, because of its green features as well as high-value properties Flowers and plants has widely development in countries. And each countries have their own unique characteristics in its flowers industry. In China, the flowers industry has gradually become a major economic hot spot. Because of its unique natural conditions, Wenjiang District has long history on cultivating flowers and is known as the "flowers and trees". Around the world, the mainly Flowers and plants-produced countries such as the Netherland and the United States both have established a comprehensive market system on the basis of its own characteristics. They are famous for its operating mode and the high level in the domestic industry specialization. But on the conditions of less lands and the long-term implementation of the household contract system, Wenjiang’s Flowers and plants industry is still under small-scale family-based business model.Since the late seventies, industrial clustering has become a hot research spot in many fields like the economics. The advantage of internalizing external costs, obtaining economies of scale, knowledge spillovers and other characteristics make the industrial agglomeration a current trend in industrial development. How to overcome the natural resistance and improve the economic and social level of industry concentration become a problem to practitioners and government. Firstly, the after reviewing the status of Wenjiang’s Flowers and plants, I select the Location Quotient, Market Concentration Ratio and the Spatial Gini coefficient tools to test industrial agglomeration level in Wenjiang’s Flowers and plants industry. Then I build the impact factors system which has huge influence to industrial agglomeration levels. After taking on-site visits with questionnaires, I analyzed the results in order to analyze the importance of the impact factor for Flowers and plants industrial agglomeration.Then, on the results of the analysis, this paper put forward its own proposals from the perspective of improving the business model. According to the current division linked bonds, there are several models in domestic Flowers and plants business model such as Family type, Cooperative business type, Production base type, Professional market type. They are all based on the actual situation or history in its own district. This article will combine business model and Flowers and plants industries to discuss mode operation characteristics and the advantages and disadvantages of each mode under the scale theory, transaction cost theory, stakeholder theory and specialized human capital theory. Then I will build a new type mode combining the advantages and disadvantages of each model and the factors affecting the degree of industrial agglomeration which can promote industrial agglomeration level and is so called "flower-Cooperatives-Enterprise". At the same time, I will describe and discuss the profit mechanism, constraint mechanism and the protecting mechanism as well as the game involved in the new mode. Besides, I’ll analyze the feasibility of this new mode. Finally, this paper puts forward the corresponding policy recommendations.After the study, this paper the following conclusions:1. Wenjiang flowers industry has formed a certain degree of industry concentration, while the whole industry is experiencing transferring from growth stage to maturity stage.2. Influential factors to hinder Wenjiang’s Flowers and plants industrial agglomeration Sort by small to large are:planting techniques<Sales Status<land size<capital investment3. On the basis of comparison and analysis among the family business model, the cooperative model, the company model analysis, we can conclude the best mode to promote industrial development of Wenjiang’s Flowers and plants industry is:"Florists-Cooperatives-Company.4. the interests coupling mechanism, security mechanism and restraint mechanism, the participate in multi-mode game analysis and analysis of feasibility of this type the new business model, have pointed out that the business model is feasible.