Life Cycle And Evolutionary Mechanism Of Industrial Cluster

In the process of global shift in manufacturing,China attracted the largest amount of direct foreign investment due to the national economic strategy and the development prospects.Owing to high degree of openness,transportation convenience and demographic advantage,the eastern region began to take the lead in integrating into the global value chain system,many companies gathered together and gradually formed the industrial cluster.In order to analysis the agglomeration conditions of manufacturing industry in the Yangtze River Delta(YRD)and the Pearl River Delta(PRD),especially,to find out the disaggregate evidence,we put forward two propositions based on the review of industrial location theory and the life cycle theory of industrial cluster:the relationship between cluster degree and cluster benefit may exhibits inverted U-shape;the industrial cluster of YRD and PRD may enter the stage of mature and adjustment.After that,we built a measurement model,and use the statistical analysis and empirical analysis with the panel date of YRD and PRD to prove our conjectures.Four main conclusions as given as:(1)The number of industries with comparative advantage in YRD and PRD has reduced,the profit to cost and expenses of textile industry,paper industry,and some other manufactures are lower than the national average.But the location quotients of high-tech industries represented by the electrical machinery and equipment manufacturing,computers,communications and other electronic equipment manufacturing continued to rise,agglomeration benefits and competitive advantages could be highlighted.(2)Since 2005,the industries cluster in YRD and PRD has changed from agglomeration to dispersion.Labor-intensive industries cluster and technology-intensive industries cluster of YRD,as well as technology-intensive industries cluster of PRD may enter the stage of mature,due to overcrowded.But the labor-intensive industries cluster of PRD may enter the stage of adjustment,began to show signs of recession.(3)In the evolutionary of the manufacturing cluster in YRD and PRD,the agglomeration played a significant role in promoting cluster benefits at the beginning,but then the role of agglomeration disappear,and the PRD was more sensitive to the increase in the level of agglomeration.At the same time,both capital deepening and infrastructure have a positive effect,the direct foreign investment has negative impact.(4)The best cluster degree of YRD and PRD are 1.75 and 2.21.chemical fiber Industry and instrument industry of YRD,as well as,furniture manufacturing,educational and sports goods and manufacture of electronic equipment and communication equipment of PRD may be excessive agglomerated.The innovation of this paper is that it brought the life cycle theory into the study of manufacturing cluster,referring to the common characteristics between "biotic community" and"manufacturing community".Also,we mainly focus on negative impact instead of promoter action caused by agglomeration.We began our study with the data of 27 industries in the YRD and the PRD,associated the cluster benefits with industrial agglomeration and dis-agglomeration.At the end of this paper,we have made empirical analysis and have given some policy suggestions.