Analysis on Industry Agglomeration's Promoting Economic Growth and Expanding the Regional Disparities——Taking the Textile Industry of Jiangsu Province for Example

This paper,based on the time-series data of the textile industry of Jiangsu Province from 1990 to 2008,adopts the principal component factor analysis and co-integration analysis to study the relationship between the industry agglomeration and regional economic growth.This study finds out that Jiangsu Province will have a 0.072% increase within the domestic GDP and hence results in a 0.144% gap(with the degree of capital accumulation increasing 1% in Jiangsu Province) and a 0.178% gap in the labor concentration.The study also finds out that economic growth caused by the labor concentration has more significant effect compared with the one caused by the capital accumulation.