Spatial Econometric Analysis of Industrial Agglomeration Effects on Labor Productivity

This paper analyzes the industrial agglomeration phenomenon based on urbanization( diversification) index and the regionalization( specialization) index with data from 2007 to 2011. With the help ofspatial panel data model,we can verify the influence of industrial agglomeration on labor productivity. Then we choose the spatial error model as the method. The result shows that both urbanization and regionalization play a positive promoting role in increasing labor productivity but urbanization has a more obvious effect. When analyzing the effect of industrial geographical factors of agglomeration on labor productivity,spatial center geometrical distance matrix has a better result than adjacency weight matrix. When analyzing the effect of Industrial social factors of agglomeration on labor productivity,spatial talent factor weight matrix is more close to reality than Spatial Innovation Factor Matrix.