Agglomeration Of The External Environment And Plant Productivity

On the basis of controlling plant’s own characteristics and regional external factors, this paper empirically analyzed the influence produced by spatial agglomeration in the around environment of plant to its productivity. To begin with, in view of the panel data in 1998-2007 from China Industry Business Performance Database, the present writer empirically analyzed the influence of spatial agglomeration to plant productivity. Secondly, this paper divided spatial agglomeration into localization economies and urbanization economies and respectively studied their influence to plant productivity. Results show that only urbanization economies has positive effect to Chinese plant while localization economies has negative effect though spatial agglomeration has positive externality.What’s more, the size of agglomeration externality is related to the scale of plant and its located city. In different cities, the influence of agglomeration to plant productivity at first is decreasing then increasing with the enlargement of plant. Meanwhile, it also shows that under the situation of imperfect Chinese market, plants spontaneously formed agglomeration scale cannot reach the highest level.