Empirical Studies on the Relationship Between Industrial Agglomeration and Economic Growth within the Urban Agglomeration —Based on Panel Data Analysis

Urban agglomeration and industrial agglomeration are similar in space, which are essentially agglomeration economy. On the basis of FujitaThisse theory model, this paper does an theoretical analysis of the industrial agglomeration within Urban Agglomeration, and an empirical study is also made with dynamic panel GMM Estimation(GMM) method of Shandong peninsula city group,2003-2011. The results both show that industrial agglomeration and economic growth presents an inverted U relationship. In the beginning, moderate industrial agglomeration promotes economic growth, while excessive agglomeration will restrain economic growth. Finally, according to the results, the theoretical analysis and conclusion enlightenment are presented.