| Today,when the market competition is increasingly fierce,a variety of regions have issued policies of industrial agglomeration in the hope of promoting economic development.However,more and more scholars find that industrial agglomeration will not only bring agglomeration effect and promote the development of the local economy,but also cause congestion effect and hinder itsdevelopment,the influence of industrial agglomeration on economic development has arisen divergent opinions.Industrial agglomeration policy as one of the important policies of local economic development,and total.factor productivity as a key measure of economic development,it is of great significance to study the impact of industrial agglomeration policy on economic development.Taking Zhejiang Province,who has been featured one village,one product;one county,one industry,as an example,this paper studies the effect of manufacturing industry agglomeration on total factor productivity in Zhejiang Province.First of all,regarding the 631 companies in the 1999-2012 China Industrial Enterprise Database as the samples,the total factor productivity and its growth rate are measured using Cobb-Douglas Production Function and DEA-Malmquist index.Secondly,the measurements of the manufacturing agglomeration in cities of Zhejiang Province are made using location entropy index as the manufacturing agglomeration index in Zhejiang Province.Finally,taking the mean value of total factor productivity in the whole city as the measurement,the influence of manufacturing agglomeration on total factor productivity in Zhejiang Province is studies empirically at the city level.This study shows that,according to the total factor productivity calculated by the Cobb-Douglas Production Function method,the congestion effect of manufacturing agglomeration on total factor productivity is already unfolding,while the impact of manufacturing agglomeration on total productivity growth is not obvious using DEA-Malmquist index method. |
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