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The Impact Of Market Integration On The Agglomeration Of Manufacturing Industries In China

Posted on:2021-01-27Degree:MasterType:Thesis
Country:ChinaCandidate:L L LiFull Text:PDF
GTID:2439330623477901Subject:Regional Economics
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Since the reform and open,the regional markets in China have gradually been opened up,products and factors of production have been flowing more freely among regions,the level of market integration has gradually been increased.The continuous deepening of the domestic market integration has exerted an increasingly significant impact on the spatial distribution of manufacturing industries.How to facilitate market integration so as to promote a more reasonable and efficient distribution of manufacturing industries,thus promoting coordinated and efficient economic development,has practical significance.Based on systematically combing relevant theories and literature,this paper investigates the development trend of China's market integration and agglomeration of manufacturing industries,analyzes the influence mechanism of market integration on the agglomeration of manufacturing industries,and empirically tested the impact of market integration on the agglomeration of manufacturing industries,to provide policy recommendations for government departments to further promote market integration and promote the rational layout of manufacturing industries.This paper uses the "price method" to measure the market integration index of 30 provinces in China,and calculates the spatial Gini coefficient and location entropy of China's manufacturing industries to measure the development trend of China's market integration and agglomeration of manufacturing industries.Between 2003 and 2017,whether in the whole country or in all regions,the level of market integration has gradually increased,the central region has the highest level of market integration,followed by the eastern region and the western region.The level of market integration in most provinces is on the rise,and the provinces with consistently high levels of market integration mainly include Zhejiang and Shandong.Between 2004 and 2017,there is a significant agglomeration phenomenon in the manufacturing industries,and the number of industries in the medium and high agglomeration state gradually increases.The eastern region has the highest agglomeration level,followed by the central region,and the western region the lowest.The agglomeration level has been on the decline in the eastern region and on the rise in the central region.There are differences in the manufacturing agglomeration levels among the provinces,the manufacturing agglomeration levels are higher in the coastal developed provinces such as Shanghai and Jiangsu,lower in the provinces such as Hainan and Xinjiang,and the degree of manufacturing agglomeration in Henan,Jiangxi and other provinces is on the rise.The impact of market integration on the agglomeration of manufacturing industries depends on the combined effect of positive and negative effects.On the one hand,market integration has a positive effect on the agglomeration of manufacturing industries through scale effect,labor sharing effect,capital accumulation effect,technology spillover effect,and system optimization effect.On the other hand,the advancement of market integration will lead to problems such as rising factor prices,resource depletion,environmental pollution,excessive competition,and crowded infrastructure,which will have a negative impact on the agglomeration of manufacturing industries.When the positive effect of market integration on the agglomeration of manufacturing industries is greater than the negative impact,market integration will promote manufacturing agglomeration,on the contrary,it will cause the manufacturing industries to decentralize.Based on the data of 30 provinces in China from 2005 to 2017,this paper constructed a panel model with manufacturing location entropy as the explained variable and market integration as the core explanatory variable,and empirically tested the impact of market integration on the agglomeration of manufacturing industries from the national and regional levels.The results of the panel model at the national level show that with the strengthening of market integration,the manufacturing industries tends to decentralize;the opening up and level of economic development have a positive impact on the agglomeration of manufacturing industries,and labor costs have a negative impact.The panel model results by region show that in the eastern region,as the level of market integration improves,the manufacturing industries tends to decentralize;labor costs have a negative impact on the agglomeration of manufacturing industries.With the improvement of market integration in the central region,the manufacturing industries tends to agglomerate;opening up,economic development level and R&D investment have a positive impact on the agglomeration of manufacturing industries,and labor costs have a negative impact.With the improvement of market integration in the western region,the manufacturing industries tends to decentralize;labor costs and economic development levels have a negative impact on the agglomeration of manufacturing industries.According to theoretical and empirical analysis results,in order to further promote market integration and rationally adjust the manufacturing space layout,the government should take measures to further curb local protection,promote the free flow of labor,and improve infrastructure construction.
Keywords/Search Tags:market integration, agglomeration of manufacturing industries, price method, location entropy
PDF Full Text Request
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