A Study On The Impact Of Industrial Agglomeration On The Industrial Structure Altitude In China

As a significant core part in information industry,software outsourcing industry has been playing a fundamental but strategic part in the development toward information society.Not only does it creative huge profits for our society,it also serves as an irreplaceable part in optimizing the industrial structure and promoting traditional industries as well as building well-off society in an all-around way on account of the spreading effect itself.Software outsourcing industry has always been considered as economy multiplier.After the huge success of the software outsourcing industry in India,China has realized the enormous economy potential in the development of the software outsourcing industry.As a result,under the guidance and political support as well as its own advantage,Chinese software outsourcing industry has made rapid achievement for last decade,and the industry agglomeration has become increasingly prominentAmid all the studies and researches in software outsourcing industry,foreign domestic researchers conduct their researches in view of the out-contracting countries,while researches conduct their researches mainly in qualitative effect of the industry agglomeration on the software outsourcing industry,the rest domestic quantitative studies concentrate on technical progress and technology spillover effect brought by the industry agglomeration.There are rarely comprehensive studies that discuss the influence of industry agglomeration on the industrial position of the Chinese software outsourcing industry in international software outsourcing industry.Therefore this paper elaborates on the development background and current situation as well as the development trend.What is more,it tries to figure out if the industry agglomeration exerts an influence on the international position of Chinese software outsourcing industry,and if there is a dynamic industrial stature effect.Considering that,this paper starts with the systemic summary of the related theories and studies around the industrial agglomeration and its dynamic effect,then it elaborates on the development history and current situation as well as the possible prediction for future development.In empirical part,assuming relative GDP incremental index as explained variable,we employ ADL(1,1)model to conduct analysis on the dynamic effect of the industry agglomeration in GMM method in order to solve the endogenous problem.In the end,we come to conclusion that professional agglomeration has firstly positive then negative effect in industry stature.The main innovation of this paper are as follows:Firstly,as mentioned before,there is rarely comprehensive study that discusses the positive effect on the industry stature in software outsourcing industry.The majority of the current studies concentrates on the qualitative discussion.So this paper presents an innovative perspective in the research on the industry agglomeration.Secondly,in the past studies around software outsourcing,researchers paid much attention on the the provinces with software industrial parks instead of those provinces without software industrial parks.This article compares those two kinds of provinces,it describes the strengths and shortcomings of these provinces with software industrial parks,also the shortcomings and potential strengths of the provinces without software industrial parks.According to the conclusion,this article comes up with related suggestions and policy advice.