The Analysis And Empirical Verification On The Mechanism Of The Affect Of Excessive Agglomeration Towards The Growth Of Enterprises

As an economic geographical phenomenon,industrial agglomeration has been associated with the growth of enterprises from the date of birth.Since the reform and opening up,with China's opening up to enhance the degree of market mechanism and the perfection of China's traditional industries,especially labor-intensive industries there are a large number of industrial agglomeration areas,the status of the enterprise growth in these areas has become the focus of the academic circles.The agglomeration economic effect produced by industrial agglomeration can promote the growth of enterprises,so many local governments popularize industrial agglomeration as industrial policies.However,industrial agglomeration is a neutral phrase.When industrial agglomeration is developed to a certain scale,there will be a problem of excessive industrial agglomeration.Research on the mechanism of agglomeration on enterprise growth especially empirical research is not enough;at the same time,the textile industry in the southeast coast of China in recent years,the enterprise transfer phenomenon,one of the causes of this phenomenon is the traditional industry in these areas over the gathering.Therefore,it has two aspects of theoretical and practical significance to explore the mechanism and empirical test of the growth of the enterprise.This paper takes the textile industry enterprises in the database of Chinese industrial enterprises in 1998-2007 as the research object,explores the mechanism of excessive agglomeration on the growth of enterprises and empirically tests them.First,from the perspective of theoretical analysis,this paper explores three effects of excessive agglomeration on Firm Growth:overcrowding effect of production factors,over competition of over agglomeration and disrupting effect of technological innovation with over concentration.These three effects constitute the three path of excessive agglomeration affecting the growth of the enterprise,which hinders the growth of enterprises in the agglomeration region.Then,based on the theoretical analysis,this paper carries out an empirical test on the above path.The first step is the empirical test of the textile industry agglomeration occurred cities identified,followed by the textile industry agglomeration time node identification,found that the textile industry agglomeration occurred in time for the 2002;then this paper based on the tendency of value difference score matching method to examine the effect of excessive agglomeration the growth of the enterprise,found that excessive agglomeration has a negative effect on the growth of enterprises.On this basis,this paper studies the path of excessive agglomeration affecting the growth of enterprises.The results show that the effect of excessive agglomeration on the growth of enterprises is realized through the congestion of production factors,excessive competition and the interruption of technological innovation.Therefore,timely transformation of industrial transfer,improvement of market mechanism,and transformation of industrial agglomeration advantage from agglomeration economy to innovation network are of great significance for the healthy development of industrial agglomeration.