Diversification,Specialization And Regional Economic Growth

In different view of the current theoretical and empirical community on the relationship between specialization and diversification and their role in economic development.This paper is based on the CES production function,A multisectoral mathematical model is constructed which is introduced of market transaction efficiency,fixed learning costs,specialized economic level and diversification of economic parameters,To qualitatively analyze regional diversification,regional specialization and its economic effects.And use the 2008-2014 prefecturelevel city panel data to doing empirical testing.General equilibrium analysis and empirical test results show that:(1)the regional level of diversification and the regional level of specialization are determined by the division of labor and the size of the market.With the improvement of regional market efficiency,the degree of specialized economy and the improvement of diversified economy and the reduction of fixed learning costs,The structure of the region is changed from a selfsufficient structure to a fully divided structure,So that the relationship between the level of diversity and the level of specialization will change from complete opposition to complete reunification.(2)Regional diversification and regional specializati on are parallel.That is,the level of diversification and the level of specialization in the process of regional economic development can simultaneously improve.There was a trend of increasing the level of specialization and diversification of the prefecturelevel cities in China in 2008-2014.(3)Diversification and specialization have a dual effect on regional average labor productivity,market size and per capita real income.Only when the region has a specialization basis,diversification can promote regional economic growth.When the level of professionalism in the local cities is high,diversification will significantly drive its economic growth.Increasing the level of each unit,the per capita real output will increase 0.28%.But When the level of professionalism in the local cities is low,diversification will inhibit its economic growth.The level of diversification for each increase in a unit,per capita real output is significantly reduced by 0.033%.Finally,according to the theoretical and empirical analysis results,put forward relevant policy recommendations.