Effects Of Industry Cluster In Hunan Province On Regional Competitiveness

Industry cluster is a situation that many strongly correlative industrial enterprises and some relevant supportive institutions oriented by a certain core industries, forming to a stable division and cooperation, gathering in a specific region to a group with a competitive advantage. In the contemporary economic development, industrial clusters produced in developed countries first.The cluster effect is very obvious in both traditional industrial or high-tech industry,and achieved great success in promoting the social and economic effects, such as the United States, Silicon Valley, Detroit automobile City.Athough China’s industrial clusters had a slow start,but the reform and opening up provide a relaxed political and economic environment to help their growing in the coastal areas,a large number of specialized industrial clusters, especially manufacturing clusters, had a rapid rise. such as the Beijing Zhongguancun electronics industry,the footwear industry in Putian, Fujian and Jiangsu Changshu textile industries.The combined effect of these industrial clusters made the area’s economic and competitiveness continued to improve,so industrial clusters has become an important measure of a country or region to improve the comprehensive competitiveness.In Chinese government work report of 2005,the implementation of the "Made in China 2025" proposed for the first time, it insist on innovation-driven,intelligent restructuring,strengthening infrastructure,green development,accelerating the shift from a manufacturing to manufacturing powerhouse.Hunan is one of the six central provinces,and also China’s important old industrial base,the development of the manufacturing industry has a certain reputation and influence in the country, especially in machinery, equipment, tobacco, paper and pharmaceutical industries these more competitive industries.In 2013,Hunan province’s manufacturing industry accounts for industrial added value accounted for more than 70%. from the industrial structure, Hunan Province has entered the post-industrialization.but due to the vast rural areas of Hunan Province and the high share of agriculture in GDP,urbanization level has a huge room for improvement,which requires the province continue to promote industrial development,and the industrial clusters of manufacturing is an effective means to promote industrialization.In recent years,Hunan has been relying on traditional manufacturing advantages,firmly grasp the opportunity of the eastern coastal industrial transfer.through enterprise’s innovation,government’s policy support, fostering of market environment,Hunan cultivated the manufacturing industry cluster,the combined effect began to show and the manufacturing cluster expanded year by year.what’s more,a number of advantages clusters produced,thus manufacturing clusters has become an impor tant way to enhance the competitiveness of Hunan region.In this paper,we put the characteristics of Hunan manufacturi ng cluster as a starting point,first twe analysis the impact of industrial clusters and the mechanism of regional competitiveness theoretically.Then through collecting and sorting manufacturing and macroeconomic data in 2006 to 2013 of Hunan Province, we used the method of statistical description to estimate the degree of concentration of manufacturing clusters in Hunan Province.Then we made a evaluation of their current situation of regional competitiveness and compared with other provinces.The next step is the establishment of industrial clusters and regional competitiveness evaluation index system of Hunan manufacturing, then using catastrophe progression method and elastic model empirical analysis on the impact of the manufacturing industry cluster in Hunan regional competitiveness.The empirical results show a total of 14 instruments manufacturing industry’s location quotient greater than one,these industries specialization in Hunan is higher than the national average,haveing a higher degree of concentration,thus indicating a clear competitive advantage in Hunan traditional manufacturing.But these traditional advantages of industry location quotient had a downward trend,indicating that the level of Hunan Province manufacturing industry cluster development need to be improved.The results from the elastic analysis show that,manufacturing competitiveness of Hunan each percentage point increase regional competitiveness will increase by two percentage points,the industrial effect for enhancing economic competitiveness effect is very significant,and we must develop the manufacturing sector vigorously for the economic development zone to forc e long-term growth. Finally,we draw the theoretical and empirical analysis of the relevant conclusions,and gave the appropriate policy recommendations to solve the certain problems,then promote regional manufacturing clusters’ development to further enhance the competitiveness of Hunan Province.