Research On The Impact Of Manufacturing Agglomeration On Regional Economic Growth

Industrial agglomeration is an inevitable outcome of the development of industrialization to a certain stage,and has an important relationship with economic growth.Industrial agglomeration can promote economic growth by reducing transaction costs,promoting knowledge spillovers,and enhancing corporate competition.As the negative effects of the increasing concentration of agglomeration continue to emerge,it will eventually show an inhibitory effect on the economy.At this stage,China's economic development has entered a new era,and the downward pressure on the economy has increased.How to promote economic growth by boosting the manufacturing industry is of great significance to our economy.This paper selects the agglomeration characteristics of the manufacturing industry,using 260 prefecturelevel cities and above as a sample.Based on data from 2007 to 2016,the panel fixed effect model and panel threshold model are used to analyze the impact of manufacturing agglomeration and other control variables on regional economic growth.Firstly,based to the related theories of manufacturing agglomeration and economic growth,combined with scholarly research literature,the influence of manufacturing agglomeration on economic growth is analyzed.Using location entropy to measure the level of manufacturing agglomeration and Combining with relevant data,this paper empirically verifies the “inverted U-shaped” influence of manufacturing agglomeration on economic growth and the mechanism behind it from the perspective of factor input.The study finds that the impact of manufacturing agglomeration on economic growth presents an inverted U-shaped relationship,in which human capital,investment and technology input are the main mechanisms leading to this economic phenomenon.Further,we find that the impact of manufacturing agglomeration on economic growth is regional heterogeneity near the inflection point by using threshold model.The level of manufacturing agglomeration in the eastern region is promoting economic growth on both sides of the threshold,but the promotion of economic growth on the right side of the threshold has weakened,confirming the current slowdown in economic growth caused by the upgrading of manufacturing in the eastern region.In the central and western regions,when the level of agglomeration does not break the threshold of agglomeration,the positive role of manufacturing agglomeration will lead to economic growth.Once the level exceeds the agglomeration threshold,the agglomeration will curb economic growth,but at present,the level of manufacturing agglomeration in the central and western regions has not yet reached the threshold of agglomeration.Therefore,it is necessary to further promote the agglomeration of manufacturing in the central and western regions through policies such as infrastructure construction and talent introduction,thereby narrowing the regional economic gap.Based on the above research,this paper encourages rationally control the level of manufacturing agglomeration and develops relevant manufacturing industries that meet local characteristics;promotes labor mobility and allows the market to play a key role in talent allocation;reduces taxes and fees,and optimizes the industrial structure;establishes and improves corporate financing systems and promotes corporate development and transformation policy recommendations are given in four aspects.On the basis of previous studies,this paper further explores the heterogeneity of the impact of manufacturing agglomeration on regional economic growth,and studies its internal mechanism from the perspective of human capital,investment and R&D investment.It has enriched relevant research,deepened the understanding of manufacturing agglomeration on the mechanism of economic growth,and also provided theoretical basis and reference for the formulation of regional industrial agglomeration policies.