Local Market Scale And Regional Industrial Growth

With the advancement of new urbanization, urban agglomeration has gradually became the most dynamic geographical unit in China's regional economic development pattern,and it is also a priority development zone in the development strategy of China's main functional areas. The middle reaches of the Yangtze River city group has a strong industrial base, industrial in its urban agglomeration construction has a unique advantage.At present, the study on the industrial development of urban agglomeration in the middle reaches of Yangtze River has focused on the impact of industrial agglomeration on regional economic development, and less on the impact of market demand on industrial development. In this study, we take the city of urban agglomeration in the middle reaches of Yangtze River as the geographical unit, based on the double-digit level data of the manufacturing industry of urban agglomeration in the middle reaches of Yangtze River during the period 2007-2014, using the spatial statistical method and the location Gini coefficient to analyze the spatial and temporal patterns and trends of the development of the urban agglomeration in the middle reaches of the Yangtze River. Then we use the market potential model under the framework of New Economic Geography to measure the market scale of the metropolitan area in the middle reaches of Yangtze River and evaluate the spatial matching of the industrial development and market potential. Finally,using the 31 cities of urban agglomeration in the middle reaches of Yangtze River constitute a panel data, measuring impact of market scale on the regional industrial growth. The result shows that the market scale has a significant effect on the industrial growth of urban agglomeration in the middle reaches of Yangtze River.From the above analysis, this paper draws these conclusions:(1) The industrial development of urban agglomeration in the middle reaches of Yangtze River has spatial agglomeration, but the spatial agglomeration degree is declining and tends to be decentralized. Through spatial autocorrelation and local Gini coefficient, it is found that the development of manufacturing industry and sub-industry is characterized by agglomeration before 2008 and tends to be decentralized after 2008.Overall, The distribution of the manufacturing industry shows a concentrated strip. one striped distribution is Xiangyang-Yichang-Jingzhou-Yueyang-Changsha-Hengyang;another bond is Xiangyang-Jingmen-Wuhan-Huangshi-Jiujiang-Nanchang.(2) The market scale of urban agglomeration in the middle reaches of Yangtze River has spatial agglomeration, but it does not exactly match the industrial development. when accessible market is limited within urban agglomeration in the middle reaches of Yangtze River, market potential is concentrated in the Wuhan Ezhou-Huanggang, Xiaogan and Xiantao metropolitan area; Changsha, Zhuzhou and Xiangtan in the southwest which constitute the Changsha-Zhuzhou-Xiangtan metropolitan area; the eastern part of Nanchang city. However, if industrial products of any city can freely trade to any areas within mainland China, the market is concentrated in the eastern part of urban agglomeration in the middle reaches of Yangtze River, including Wuhan, Ezhou,Huanggang in Hubei province and Jingdezhen, Shangrao in Jiangxi province. Market accessibility is the key to turn the market potential of the eastern region into a real industrial development advantage.(3) Market scale is the primary factor to promote industrial development of urban agglomeration in the middle reaches of Yangtze River. Through the selection of market scale index, the number of employees, the degree of opening to the outside world, the degree of government intervention and the whole society investment in fixed assets five factors, establishing economic model of industrial development, and it is found that the market scale has played a significant role in promoting the industrial development of urban agglomeration in the middle reaches of Yangtze River both inside and outside the Yangtze River. Finally, this paper puts forward relevant policy recommendations.