Research On The Agglomeration Effect Of Manufacturing Industry In Jinzhong

As an important dynamic phenomenon of regional spatial distribution, industrial agglomeration not only is a research hotspot in economics, sociology and other fields, but also plays an important role in optimizing industrial distribution, upgrading industrial structure and making industrial policy. As an effective spatial organization form, the manufacturing industry agglomeration can promote the development of not only manufacturing industry itself, but also related industries within the area, through economies of scale, technology spillovers, public resource sharing and so on, resulting in regional economic growth. Industrial agglomeration of manufacturing industry and sub-industry in Jinzhong, a typical resourceful city, showed uniqueness in the process of industry transformation and upgrading, which could present common characteristics of cities in industrial conversion. Therefore, researching on the agglomeration effect of manufacturing industry in Jinzhong has an important guiding significance.This paper mainly studies the agglomeration effect of manufacturing industry in Jinzhong. First of all, the research introduction elaborates the background and significance, the research methods and ideas as well as the innovative points of this paper. Chapter 2 includes literature review and theoretical analysis. On one hand, from the aspects of influential factors, measurement and effect of industrial agglomeration, this paper summarized domestic and foreign literature related with industrial agglomeration; On the other hand, from the aspects of economies of scale, competitive effect, innovation effect and technology spillover effect, the paper theoretically analyzed the industrial agglomeration effect. Secondly, this paper analyzed current situation of the manufacturing industry development and its agglomeration using the data of the added value of manufacturing industry and its fragmentation, number of workers in manufacturing, manufacturing unit of legal entity as well as the location entropy index of manufacturing industry and its 25 sub-industries. Last but not least, this paper used modified constant elasticity of substitution production function model introduced by Tang Jie for reference, to conduct empirical analysis on the agglomeration effect of manufacturing industry in Jinzhong, using the data from 2005 to 2014 of total profit, added value and net value of fixed assets of Jinzhong manufacturing industry. Meanwhile, in order to delve into the agglomeration effect of manufacturing industry, agglomeration economy effect is decomposed into internal agglomeration economy, layout agglomeration economy and urban agglomeration economy to further discuss the effect of three kinds of factors of agglomeration economy on the manufacturing industry agglomeration in Jinzhong. This paper concluded that: the degree of industrial clustering of manufacturing in Jinzhong was in a fluctuate downward trend as a whole; the difference of the degree of manufacturing sub-industry clustering was obvious; the agglomeration effect of manufacturing industry in Jinzhong evident and the manufacturing industry has reached benign agglomeration, revealing evident agglomeration economic effect; internal agglomeration economic factors have promoted the cluster of manufacturing industry while the layout economic agglomeration has hindered its cluster, and urban agglomerating economy has little effect on the cluster of manufacturing industry. On the basis of this conclusion, this paper advises on encouraging the agglomeration of manufacturing industry.