The Micro Mechanism Of Enclave Economy Promoting Regional Division Of Labor

The organic combination of efficient market and effective government construction is the key to promoting regional market integration and improving the regional division and cooperation mechanism,as well as an important part of establishing a unified national market.‘Enclave economy’ has proved to be a new practice of regional division and cooperation,with an extraordinary increase in recent years.Although the development of enclave economy has been in full swing in practice,so far the theoretical circle still lacks a better explanation of the mechanism of enclave economy promoting regional division of labor.Thus,it is of great theoretical and practical significance to probe into the micro mechanism of enclave economy promoting regional division of labor.Combined with practical development,this thesis holds that enclave economy is a new form of regional division of labor and cooperation between two heterogeneous regions that are independent of each other in administrative divisions and remain differences in economic development.According to the different development formats of enclave economy,there are two typical types of enclaves in practice: traditional manufacturing enclave and scientific innovation enclave.This thesis mainly selects these two types of enclaves for mathematical modeling.Among them,most of the traditional manufacturing enclaves are developed regions that set up enclaves in underdeveloped regions and export mature processing and manufacturing industries in a one-way manner,in order to optimize the local industrial environment,especially to overcome local spatial constraints and reduce production costs,while simultaneously fulfilling the political task of helping the industrial development of underdeveloped regions.While scientific innovation enclave is an innovative bottleneck for the development of most local enterprises in underdeveloped regions.In order to take advantage of external innovation resources,it takes the initiative to set up enclaves in developed regions to obtain high-end innovation elements.As John Stuart Mueller said,‘The government takes action on a matter of great relevance to public convenience’.This assertion clearly defines the basic principles of government behavior,and can also be understood as the basic principles of providing regional public goods in a broad sense for the government.Land space constraints in developed areas and innovation bottlenecks in less developed areas are all ‘matters of great importance to the convenience of the local public’.The public goods attribute of enclave economy to local economic subjects constitutes the core feature of enclave economy that is different from the traditional form of inter regional division of labor,and is also the entry point of this thesis.The formation of enclave economy is not so much the result of the natural evolution of economic development as the result of the active construction of the government in accordance with the law of economic development.Therefore,enclave economy has the following theoretical characteristics.Firstly,enclave economy is an inter regional division of labor,so it has all the general characteristics of a division network.Secondly,enclave economy is an inter regional division of labor involving the provision and use of regional public goods,so it has its particularity.Then,when it comes to the mechanism of enclave economy promoting regional division of labor,we should focus on how regional public goods promote the development of regional division of labor.Based on this,this thesis adopts the analytical paradigm of emerging classical economics to construct an inframarginal regional division model with endogenous regional public goods,analyzes the internal mechanism of regional public goods to promote the development of regional division under the two modes of traditional manufacturing enclave and scientific innovation enclave,and verifies the model analysis through numerical simulation technology.Finally,this thesis also selects Jiangyin Jingjiang Industrial Park and Quzhou Haichuang Park for case demonstration,conducts a qualitative analysis of the data based on the grounded theory,and summarizes the impact of the two types of typical enclaves on regional division of labor by comparing the similarities and differences between the two cases,and provides feasible suggestions for their further development.By summarizing the above analysis and demonstration,this thesis draws the following conclusions on the micro mechanism of enclave economy promoting regional division of labor.Firstly,in the form of enclave division of labor,various economic entities should divide their work according to their exogenous comparative advantages,and economic entities will gain more benefits from division of labor due to the improvement of regional transaction efficiency and deepening of specialization.Secondly,the form of enclave division of labor benefits from the regional public goods provided by the government through public finance.The supply of regional public goods can greatly improve the efficiency of inter regional transactions and promote the development of regional division of labor.Thirdly,the industrial structure of enclaves will have an impact on the division of labor.For example,the degree of circuitous production can affect the division of labor by affecting the way public goods are provided,and the development of leading industries will also affect regional economic growth.Fourthly,the enclave economy is actually the product of a better combination of an effective market and a promising government.Only when economic entities participate more actively in enclave cooperation and the government provides more efficient support for regional public goods,can the development of interregional division of labor be better promoted.Last but not least,the cases of traditional manufacturing enclave and scientific innovation enclave show that the enclave economy should still ‘further improve its development level’ and ‘expand its economic volume’.At present and in the next step,the upgrading and improvement of enclave economy should focus on these two aspects to strengthen the role of enclave economy in promoting regional division of laborSome policy recommendations derived from the above conclusions can not only provide ideas for promoting the sustainable development of enclave economy,but also provide references for improving the order of market division of labor,straightening out the relationship between the government and the market,and building a unified national market.