| As one of the most developed area with deepest market economy, Yangtze River Delta region not only has high economic level and competitiveness among the country, but also plays to the advantages of the industrial spatial agglomeration and huge market potential in the process of participating in the international industrial division and rising global value chain. In addition to the subjective conditions of resource endowments and geographical advantages and national industry support policy, to a large extent it benefits from the similarities with the core periphery framework of the new economic geography which is in correlation with factor flow, regional trade, scale economy and knowledge spillover. To study the industrial division and cooperation of Yangtze River Delta region, this paper represents an analysis path based on the spatial match and coupling of human capital and industry by combing classical theory of industrial division and cooperation and analyzing current situation of industrial division and cooperation. We expended the linear Footloose Entrepreneurs model under core periphery framework by deducing the model, making mechanism analysis and analog simulation. Especially we have analyzed the flow of skilled labor, trade freedom, industrial spatial distribution and welfare compensation and have studied free market economy and government intervene mechanism of industrial division and cooperation. Combined with the status quo of industrial division and cooperation of Yangtze River Delta region, we have also given an empirical analysis to verify the proposition hypotheses in the model at last.The main conclusions of this paper are as bellow:(1) Under the long-term equilibrium, accompanied with the spatial match and coupling of human capital and industry, human capital spatial agglomeration could influence regional industrial division, the positive and negative feedback of which was decided by the strength of regional trade freedom. (2) Areas with high degrees of trade freedom in urban agglomeration are suitable for developing industrial chain division of labor pattern through headquarters and factory economy to carry on the industrial spatial layout. This could form an agglomeration state of space separation for two economies in industrial chain. (3) The problem of spatial distribution of industry in free market economy results in the tendency for spatial distribution of industry from different group and the deviation of optimal market concentration from optimal social concentration, which objectively reflects the continuity of unbalanced spatial industrial distribution of Yangtze River Delta. Reasonable division and cooperation needs compulsory government intervention, including not only single transfer payments but also reasonable methods of balancing industrial location, which could maintain the consistency of optimal market and optimal society concentration.The innovation of this paper is that it brought the core periphery framework of new economic geography into Yangtze River Delta region to analysis the industrial division and cooperation mechanism. By using methods of deducing model and analog simulation, we study the impact on industrial spatial agglomeration from different factors and related cooperation mechanism under free market economy and government intervention. We also explored the industrial layout dilemma under the free market mechanism and gives ways to crack it. The limitation of this paper is that it didn’t adequately consider the influence from service industry to industrial division and cooperation. In addition, normal human capital, monetary capital and endogenous growth theory could also complexly effect industrial division and cooperation. The availability and accuracy of the empirical data is worth taking consideration as well. |