Industrial Agglomeration,Economic Growth and Regional Disparity——An Empirical Study Based on Provincial Panel Data in China

Based on the provincial panel data during 1999 -2007,this paper explores the impact of industrial agglomeration on economic growth and regional disparities in China. The results indicated that industrial agglomeration promotes economic growth significantly. Furthermore,industrial agglomeration results in regional disparities which results from two aspects: one is the gap of the economic development between industrial agglomeration zones and non-industrial agglomeration zones,and the other are the differences of growth effect among the four major regions which derived from the differences of external economies of scale,technology externality and pecuniary externality. Therefore,in this paper, the growth effect of industrial agglomeration is supposed to be in accord with the inverted N-curve hypothesis and be in the midst of the inverted N-curve in China currently.