The Empirical Research Of Urban Scale And Enterprise Productivity

The constant enlargement of the urban construction scale is a main feature in the process of urbanization, In the early days, the city develops scale economy through the spillover of the knowledge and technology, sharing infrastructure and expanding the connection of the pre and post in industrial, and then promote the development of the regional economy. However, with the further expanding of the city size, it brings urban disease, such as traffic congestion and environmental pollution. Enterprises, as the main market economy, are provider of commodity markets and the demander of the labor market. They are not only an important part of the national economy, but also the main power of the economic development. Enterprises incessantly promote the economic development of the city and they are also affected by the size of the city at the same time. Therefore, it is an important reason of determining the future development direction of city that urban scale effect brings the micro production subject of the actual benefit or not.Firstly, this paper summarys sustainable development of enterprises and urban scale on the basis of relevant literature at home and abroad to find out the relationship between urban scale and corporate sustainability. Secondly, based on the survey data of micro enterprises and the statistical data of cities scale from 1998 to 2007, this paper studies the causal relationship between urban scale and enterprise productivity. The regression results shows that urban scale increases a percentage point, enterprise productivity will increase 0.0047 percentage points. In order to avoid endogenous problems, the paper use instrumental variable method to fix the regression model. Results show that the urban scale expands a percentage point will bring business productivity increased 1.18 percentage points, and the eastern midland and western all showed positive effects without exception. The empirical results and theoretical analysis are identical with each other, that is urban scale helps to improve the level of sustainable development of enterprises and they present inverted u-shaped relationship.Based on the above theoretical analysis and empirical test, The basic point of this article is that promoting the urbanization process is still the important gripper of releasing enterprise innovation or development; although the eastern region is more and more affected by the urban crowding effect, but other areas are benefiting from the expansion of the urban scale.