Congestion of Production Factors and Optimal Agglomeration Recognition——Based on the Perspective of Industry Heterogeneity
Shen Nen
Abstract
Shen Nen
Abstract
Industrial agglomeration has two sides,positive and negative externalities may occur at different stages of agglomeration.From the angle of industry heterogeneity,the paper introduces the crowding effect caused by excessive agglomeration to analyze the change of total factor productivity of manufacturing in China and use nonlinear threshold regression model to study threshold characteristics of different types of industrial agglomeration and determine the optimal level of agglomeration.The results show that the industrial agglomeration's effect on productivity is not monotone increasing(decreasing),the influential coefficient in different industries and interval is different.With the increase of industrial agglomeration,the impact on the industry productivity first increases and then decreases and presents three nonlinear thresholds.According to the given tradeoff between agglomeration degree and productivity,the paper presents the judgment standard of promoting,moderate and excessive agglomeration.Chinese industrial productivity and agglomeration activities present the characteristics of spatial mismatch.Agglomeration choice depends on the relationship between agglomeration economy and sunk cost for relocation.The policy implication is obvious:the government should reconstruct the industrial collaborative mechanisms among regions to implement the multi-spatial strategy through the collaborative innovation mechanism of industrial chain.Government should avoid blindly increasing(decreasing) agglomeration degree and instead establish differentiated agglomeration level in accordance with the realistic characteristics of various industries.
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Industrial agglomeration has two sides,positive and negative externalities may occur at different stages of agglomeration.From the angle of industry heterogeneity,the paper introduces the crowding effect caused by excessive agglomeration to analyze the change of total factor productivity of manufacturing in China and use nonlinear threshold regression model to study threshold characteristics of different types of industrial agglomeration and determine the optimal level of agglomeration.The results show that the industrial agglomeration's effect on productivity is not monotone increasing(decreasing),the influential coefficient in different industries and interval is different.With the increase of industrial agglomeration,the impact on the industry productivity first increases and then decreases and presents three nonlinear thresholds.According to the given tradeoff between agglomeration degree and productivity,the paper presents the judgment standard of promoting,moderate and excessive agglomeration.Chinese industrial productivity and agglomeration activities present the characteristics of spatial mismatch.Agglomeration choice depends on the relationship between agglomeration economy and sunk cost for relocation.The policy implication is obvious:the government should reconstruct the industrial collaborative mechanisms among regions to implement the multi-spatial strategy through the collaborative innovation mechanism of industrial chain.Government should avoid blindly increasing(decreasing) agglomeration degree and instead establish differentiated agglomeration level in accordance with the realistic characteristics of various industries.
Key concepts: Economies of agglomeration, Productivity, Economic geography, Economics, Production (economics), Industrial organization, Externality, Relocation