2012Ecological EconomyRequires access

Scale Effect of Industrial Agglomeration in Yangtze River Delta and Its Policy Enlightment

Li-Xin Zhong

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Abstract

The coordinated development of regional economy results from the knowledge and technology spillovers and the advantage complementation.According to the related research in new economy geography,geographical proximity not only brings about successful replication but also path dependence and technological lock-in,which may lead to the declining of the old industrial regions.In this paper,by measuring the SP index of the manufacturing industries with 2-digit classification codes in the Yangtze River Delta,we find the existence of self-similarity within the same province whereas the complementation beyond the provincial range.The scale effect of industrial agglomeration existed in the developed area may provide a reference and policy enlightment for the economic development in undeveloped areas and the industrial transfer between regions.

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The coordinated development of regional economy results from the knowledge and technology spillovers and the advantage complementation.According to the related research in new economy geography,geographical proximity not only brings about successful replication but also path dependence and technological lock-in,which may lead to the declining of the old industrial regions.In this paper,by measuring the SP index of the manufacturing industries with 2-digit classification codes in the Yangtze River Delta,we find the existence of self-similarity within the same province whereas the complementation beyond the provincial range.The scale effect of industrial agglomeration existed in the developed area may provide a reference and policy enlightment for the economic development in undeveloped areas and the industrial transfer between regions.

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Available abstract

The coordinated development of regional economy results from the knowledge and technology spillovers and the advantage complementation.According to the related research in new economy geography,geographical proximity not only brings about successful replication but also path dependence and technological lock-in,which may lead to the declining of the old industrial regions.In this paper,by measuring the SP index of the manufacturing industries with 2-digit classification codes in the Yangtze River Delta,we find the existence of self-similarity within the same province whereas the complementation beyond the provincial range.The scale effect of industrial agglomeration existed in the developed area may provide a reference and policy enlightment for the economic development in undeveloped areas and the industrial transfer between regions.

Key concepts: Economies of agglomeration, Economic geography, Yangtze river, Delta, Scale (ratio), Index (typography), Urban agglomeration, Replication (statistics)

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