Study On Industry Cluster Based On Labor Division Theory

Labor division theory was one of the most important theories in Political Economy after Adam Smith. Relevant research about labor division theory has never been stopped in hundreds of years. The research about labor division theory became a focus point in the present economics academy, accompany with the establishment of extra-marginal analysis method. It is an interesting question for economists to combine labor division theory with empirical study. At the same time, industry cluster, as an organization which is between market and enterprise promotes the development of global economics. It is important for emerging economies. The essay did some research for the formation and development of industry cluster based on labor division theory with extra-marginal analysis method. The essay divided the industrial clusters of developing countries into three kinds----industrial clusters of axle type, industrial clusters of Satellite platform, and Italian industrial clusters. The essay analyzed the reason of the formation and development of industry clusters and gave some advice for development of industry clusters.At the very beginning, the essay analyzed that labor division promoted the formation of specialized production, the raising of labor productivity, the reducing of transaction cost. All these were the reasons for the formation of industry cluster and the inevitable choice for enterprise to maximize profits.What’s more, the essay divided the industrial clusters of developing countries into three kinds----industrial clusters of axle type, industrial clusters of Satellite platform, and Italian industrial clusters. According to analyzed different industry clusters with different characteristics, the essay gave different reasons of their formation. The labor division of critical enterprise was the reason why industrial clusters of axle type formatted. The international division of labor gave a chance to develop industrial clusters of Satellite platform. The formation of Italian industrial clusters depended on labor division and specialized production of family-owned enterprises.Thirdly, the essay chose three Chinese representative industry clusters----Changchun automobile industry cluster, Suzhou IT industry cluster, Wenzhou lighter industry cluster to do empirical study to describe their present situation, bottlenecks and development trend. Last but not the least, the essay gave development countermeasure from three parts----government, industry cluster, and enterprise based on the mechanism analysis and empirical study above.