Institutional Analysis of Enterprise Agglomeration and Urban Development---Yangtze River Delta Region

Author: Fudan University Press
Publisher:
Publish Date: 2006-04-04
Features: This book primarily examines the urban development process of the Yangtze River Delta region since the reform and opening-up from a micro perspective of enterprise agglomeration. By establishing an urban development model based on enterprise agglomeration and a model of urban development and evolution that combines self-organization and organization, it empirically investigates the impact of institutional factors on urban development in the Yangtze River Delta region since the reform and opening-up. Through exploring the urban development path of the Yangtze River Delta region since the reform and opening-up, the book discusses and reveals the intrinsic driving forces and patterns of urban development in different periods and stages. The urban development model based on enterprise agglomeration indicates that: as a comprehensive agglomeration of population and economic activities, urban development and evolution are fundamentally driven by enterprise agglomeration behavior. Specifically, enterprise agglomeration behavior primarily affects urban population agglomeration through the urban labor market, influencing urban scale changes and demographic characteristics; it primarily affects urban economic agglomeration through the urban product market, impacting urban industrial structures and economic characteristics.
Building on this, the book takes the urban development of the Yangtze River Delta region as a case study, drawing on the urban development and urban system evolution models from new spatial economics to examine and assess its urban development path since the reform and opening-up. The findings reveal that: due to the influence of institutional factors, the new spatial economics urban development and urban system evolution models, which neglect institutional variables, cannot adequately explain the urban development and evolution of the Yangtze River Delta region since the reform and opening-up.
Therefore, the book modifies the new spatial economics urban development and urban system evolution model by incorporating institutional variables to establish a model of urban development and evolution that combines self-organization and organization. It then conducts empirical analysis and research on enterprise agglomeration and urban development evolution in the Yangtze River Delta region since the reform and opening-up. The findings show that: since institutional factors significantly interact with market factors to influence and determine the course of urban development, their role in enterprise agglomeration and urban development cannot be overlooked. In fact, the urban development of the Yangtze River Delta region since the reform and opening-up has essentially undergone a transition from being primarily driven by industrialization to being dominated by government intervention.
Among these regions, although the patterns and characteristics of enterprise agglomeration and urban development in Jiangsu, Zhejiang, and Shanghai have varied since the reform and opening-up, they all exhibit a clear common feature: the combined influence of enterprise agglomeration and policy intervention—i.e., market forces and institutional factors—has shaped urban development and evolution. Moreover, the impact of institutional intervention and institutional reform on urban development is particularly pronounced.
Building on this, to further uncover the urban development patterns of Jiangsu, Zhejiang, and Shanghai, the book examines enterprise agglomeration models, leveraging specialized economic indicators and urbanization economic effect indicators. Through analyzing the changes in employment population distribution and production distribution in these regions since their accelerated urban development, as well as calculating the urbanization economic effect index for Jiangsu and Zhejiang, it further empirically investigates the distinct urban development paths of Jiangsu, Zhejiang, and Shanghai within the Yangtze River Delta region since the reform and opening-up. The findings reveal:
1. Within the Yangtze River Delta region, Shanghai predominantly follows a "government-led" urban development path, while Zhejiang exhibits a "market-led" urban development path. Jiangsu's urban development path falls between the two, representing a "market and government mixed" model.
2. Among the two distinct urban development paths in Jiangsu and Zhejiang, the "market-led" urban development in Zhejiang demonstrates significant urbanization economic effects, whereas the "market and government mixed" model shows less pronounced urbanization economic effects. This suggests that the "market-led" urban development path may be superior to the "market and government mixed" model. Additionally, combining the urban development model based on enterprise agglomeration, a "government-led" urban development model may be detrimental to long-term urban development.
3. Focusing on enterprise agglomeration while actively advancing institutional reforms and utilizing institutional incentives to drive urban development and urbanization is essential for healthy, sustainable, and rapid urban growth.
Finally, the book offers corresponding recommendations to accelerate urban development and urbanization in the Yangtze River Delta region in the new century, based on the current state of urban development in the region.