The Relations between Concentration and Agglomeration in Manufactures Development of China

Industrial concentration and industrial agglomeration are both hot phenomena in industrial development. The former focuses on the scale of individual enterprises. And the latter cares about the scale of specific industry in a named place. Researches on the two respective topics are numerous. However, researches on the relations between them are seldom seen from the beginning researches of most famous economist, like Marshall, till now. It’s very important to discuss the relations because they will influence the two related fields and the efficiency of relevant industrial policies on the two aspects if there are really critical relations. Therefore, whether there is any relation between them, what are the relations’ characters, and how the relation behaves in the developing process need discussion. During the fast growing and transiting process of Chinese economy, the relations will surely have more specialties. The researches on above questions will help decide on proper policies and improve the developing health of Chinese industries. This paper discusses the relation by reviewing theories of concentration and agglomeration first. From the literature review, we can find that the relation’s essence is the contrast of scale economy and agglomeration economy. Manufactures are the most representative industries. Using secondary data research with panel data from yearbooks on Chinese manufactures and case researches of the still industry, the paper calculates agglomeration and concentration degrees of manufactures, proves some results and leaves some proposals for further study.