Research on Changing Trend of China's Manufacturing Industrial Agglomeration Degree and Its Affecting Factors

This paper proposes a framework for factors affecting industrial agglomeration based on new classical economics,economic geography,new economic geography,and political factors.And then this paper measures the agglomeration degree of China's 18 manufacturing industries from 1988 to 2005 by using EG index.Besides,this paper tests the affecting factors' effects to industrial agglomeration by using China's macro time-series data.The results indicate that the overall agglomeration degree of China's manufacturing industry is quite high,especially those resource-intensive industries and hi-tech industries.China's industrial agglomeration degree has continuously ascended from 1988 to 2005.The empirical test reveals that industrial agglomeration,transportation condition,enterprises' scale,local protectionism and openness are cointegrated.It is also found that the industrial agglomeration will increases as transportation condition improves,enterprises' scale enlarges,and local protectionism weakens.