Empirical Study About The Influence Of Industrial Agglomeration On Urbanization

Urbanization has gradually become a new dynamic and rapid growing economic development in our country. Having an efficient and strategic urbanization process goes a long way to develop our country. Agglomeration and industrial agglomeration as the leading resources, promote industrial growth and improve industrial structure.The effective ways to raise the overall competitiveness of economies is an important factor in urbanization. According to the existing literature on economic development urbanization is better in the coastal areas. Research has shown that the industrial agglomeration effects on urbanization is a significant positive correlation, because of the central region, such as Hunan compared to more developed coastal areas.Resource endowment and industrial foundation has certain differences, so the effects of industrial agglomeration of urbanization consistently influence urbanization. we still need in-depth and comprehensive research in this area.The existing literature analysis mainly uses the regional or provincial macro data,because of the difference of regional scale on industrial agglomeration and its effect on the urbanization level.This article will study the effect of industrial agglomeration of urbanization in Hunan province, fully using the related theory and analysis of the specific situation of Hunan province and how industrial concentration can promote the development of urbanization in empirical research. Firstly, the theoretical analysis of industrial agglomeration phenomenon of motivation has advantages, as well as factors that affect urban development. It’s power system explains the industrial agglomeration as an important driving force in promoting urbanization. In the process of urban development it provides material resources, enhance cohesion and widen the mechanism of geographical space. Then on this basis, in-depth analysis of the evolution process and current situation of urbanization in Hunan province, probes into the industrial agglomeration situation to promote the urbanization of Hunan province.It is then that we should use the county level panel data from 2002 to 2009, with the urbanization level(measure using the population urbanization level) to be explained as a variable. The industrial concentration degree(measure using Hector fender index and industrial concentration) as the main explanatory variables, population scale, the per capital GDP and industrial level as control variables and the model as the empirical test. For eliminating the influence of macroeconomic factors, using theannual tool for new virtual variable regression test. The empirical results will show that the industrial agglomeration effects on urbanization in Hunan province are obvious, and at the same time, the higher the level of economic development of local urbanization level. The greater the population size, the lower the level of urbanization.Finally, combined with the present situation of Hunan province, understanding the industry cluster in Hunan province will promote the process of urbanization and reduce the problem of deficiencies and puts forward countermeasures and Suggestions.Industrial agglomeration, breaking system obstacles, this paper argues and attaches importance to establishing characteristic industrial cluster areas and strengthen the regional cooperation between innovation, industrial agglomeration and urbanization to promote common development.