Interaction Of Public Policies And Regional Industrial Agglomeration

Both theory and practice show that industrial agglomeration can promote regional economic development.Under the incentive of officials assessment system oriented by GDP,governments at all levels are keen on making policies to guide regional industrial agglomeration,and try to spur local economic growth by industrial agglomeration.However,the policy adopted by the government is not single,different policies are intertwined and operated parallel,and the interaction between them behaved as countervailing together with interdependenthas a substantial impact on the effect of policy implementation.This article will explore the interaction between the policies impacted on industrial agglomeration specifically,and select three policies including trade policy,fiscal policy as well as financial policy which are usually adopted by the governmentas the research object.By the means of analyzing internal interaction of these kinds of types of policies construct a theoretical explanation model about this paper.Based on the model we carried out an empirical analysis used the provincial panel data of 2001-2015.The study finds that trade policy,combined with financial policy can promote industrial agglomeration in different degree,however,the impact of financial policy on industrial agglomeration is not significant.But between any two types of policies exist a relationship of negative substitutes,and this relationship tends to be complementary among the three policies.In addition,through the study of the evolving of industrial agglomeration which performed as "inverted U"shape,we put forward ahypothesis that the interaction between the policies exist timeliness.This assumption finally proved to be true bythe results verified in the empirical part of the paper.Both the changes in the macroeconomic environment and the structural adjustment of the policy will result in the interaction between policies as the times change.In the end,several suggestions will be put forward according to the conclusion of the research.Aims to provide a decision-making reference for all levels of government,helping them formulate various policiestogether with select the policy combinations rationally.So that they could promote local industrial agglomeration more scientifically combined with drive the regional economic development and prosperity.