Study On Manufacturing Industry Agglomeration,scale Economy And Dynamic Of Comparative

On March 28,2018,the executive meeting of the State Council determined that from May 1,2018,the VAT of the manufacturing industry will be reduced from 17% to 16%.The strategy focuses on the manufacturing industry,through tax reductions,fee reductions and other macro-controls,reducing corporate tax burdens,optimizing the manufacturing environment for development,and accelerating the process of industrialization in China.At present,the spatial agglomeration phenomenon in China's manufacturing industry has become increasingly prominent,with the “central-periphery” structure centered on the eastern and periphery in the west.However,over-agglomeration of the manufacturing industry has not only seriously affected the manufacturing industry in the eastern,but also difficult to get rid of extensive low-level industrial structure.Under the big framework of “Made in China 2025”,how to gradually realize a leap in China's manufacturing industry,expand the influence of Chinese manufacturing in the world,and increase the value of the global industrial chain division have become an urgent problem to be solved.This article starts with relevant theories of industrial agglomeration,scale economy,and dynamic of comparative advantage,analyzes the situation analysis of China and mechanism among the three parties.Then,using the panel data of most provinces in China from 2001 to 2015,we conclude that the phenomenon of excessive industrial clustering in the eastern region is most evident in labor-intensive industries.Compared to capital-intensive industries,the degree of labor-intensive industrial agglomeration has a greater negative impact on its economies of scale.In the central and western,the labor-intensive industries have not over-agglomerated,but the positive impact on scale economy is decreasing,the positive impact of the capital-intensive industries is smaller than the labor-intensive industries.And technology-intensive industry has not over-agglomerated around the country.Due to the "hysteresis" between scale economy and comparative advantages,the comparative advantages of eastern manufacturing industry are still stronger than those of midwest.So there is still much room for development in the manufacturing industries in the central and western regions.Finally,policy recommendations are proposed to promote the dynamic upgrade of China's manufacturing industry's comparative advantages.