Research On The Effect Of Factors In Productivity Of Textile Industry In Yangtza Delta

Textile industry is a very traditional industry and plays an incredible part in meeting people’s demands, providing jobs and earning export surplus. In 1990s, textile industry was the breakout point for stated-owned corporations and had taken place series of adjustment in organization and operating in order to accommodate market economy. At the same time the location of textile industry also changed a lot and East China gradually formed several characteristic Industrial Clusters which developed very fast in the past 10 years. However, appreciation of the RMB、labor costs and 2008 financial crisis made the textile industry be faced with serious challenge.This paper examines the factors affecting labor productivity from Industrial agglomeration externalities.By researching the papers and theories published in China and abroad,this paper clearly grasps the related methodology and conclusion.A lot of papers published in China and abroad have been involved with agglomeration and labor productivity,but most of them pay more attention at set of manufacturing industries and fewer papers have concerned much in characteristic industrial agglomeration. Moreover, the parameter measuring agglomeration selected in most papers merely focus at the different externalities in detail.Differentiating existing papers, this paper focuses at textile industry in the Yangtze River Delta,examines labor pool, spillover, market accessibility and congestion externalities which affect the labor productivity of textile industry.The paper structure is:First, researching ample related papers and theories to summarize the present academic achievement. Second, researching history evolution of China textile industry and industry agglomeration situation of the Yangtze River Delta, especially the effects of 1990s textile industry adjustment in state-owned enterprises. Thirdly, drawing lessons from present econometrics model and parameters, constructing traditional production function as the basic model to formulate the final econometrics model for empirical analysis and political measures.This paper concludes:the industrial agglomeration externalities have positive effect to the labor productivity, in detail the home market accessibility contributing most,then labor pool and foreign market accessibility and spillover effect progressive.However, congestion effect is not outstanding.