Empirical Study On The Relationship Between High And New Industrial Agglomeration And Economic Growth In Lanzhou-Baiyin Economic Zone

With the deepening of economic globalization, the importanceof geographic space in theeconomy increasingly highlights instead of weakening. It plays an indispensable role on thebig stage of the world economic development. The same or similar industry gathered in aparticular area constantly, then the phenomenon of industrial agglomeration occurred. Theindustry cluster can make enterprises obtain unique competitive edge, the silicon valley in theUnited States and Zhongguancun in the China are the good proofs. And in many industries,the high and new technology industry meteoric rised in nearly30years, its proportion in thenational economy is increasing and pull effect on the economic growth is strengthening. It hasrapidly developed into the core essential factor of improving the comprehensive nationalstrength and international competitiveness. Recently, as the most dynamic economic growthpole in Gansu province and even the whole northwest region, the high and new technologyindustry in Lanzhou-Baiyin economic zone is also in full swing, its industrial agglomerationis accelerated concentrating. Therefore, study on the agglomeration situation of high and newtechnology industry in Lanzhou-Baiyin economic zone and the relationship with economicgrowth is of great significance, and it can provide reference for industrial cluster developmentof the new district in Lanzhou and even the other western undeveloped region.Firstly, the paper got theoretical basis through reviewing the agglomeration theory. Thenwe described the overall development situation of Lanzhou-Baiyin economic zone and highand new technology industry. After that, we used the indicators of industrial agglomeration tomeasure the agglomeration degree of high and new technology industry in this area. Inaddition, we made a normative econometric analysis on the relationship betweenagglomeration degree and economic growth. Finally, we got a conclusion and gave somecorresponding policy recommendations.Based on the time-series data from2000to2012of Lanzhou-Baiyin economic zone, thepaper used LQ index, the regression model, Granger causality test and the VAR model tomake an empirical study. The results showed that firstly, the high and new technologyindustrial agglomeration in Lanzhou-Baiyin economic zone had already formed, and theagglomeration degree increased year by year. The agglomeration index value was almostmore than1and it had risen to2in recent years, which suggested that the high and newtechnology industry in Lanzhou-Baiyin economic zone had just passed infancy and was in theperiod of rising development. During this period, although the industrial agglomeration hadalready formed and brought the scale effect, its efficiency remained to be further enhanced,the agglomeration pattern remained to be further perfect. Secondly, it had a long-term equilibrium relationship with economic growth. Every1%increase in high and newtechnology industry agglomeration degree, which could cause the per capita GDP ofLanzhou-Baiyin economic zone increased by about1.01%. The industrial agglomeration hadpromoted economic growth, in turn, the economic growth did not lead to a higher level ofhigh and new technology industry cluster. At last, the high and new technology industrialagglomeration in Lanzhou-Baiyin economic zone was a cluster model dominated by thegovernment, which required the government should strengthen the policy guidance andprovide a good environment for cultivating and developing industry clusters, clear division oflabor and enhance the strategic cooperation between the regions, strengthen cultivatingintermediary organizations and build the industry clusters’ support system, transform thefunction of government and strengthen the supply of public products.