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Market Potential, Industrial Co-agglomeration and Regional Wages Income: Empirical Evidence from 151 Chinese Cities
Author(s): 
Pages: 77-88
Year: Issue:  1
Journal: Nankai Journal(Philosophy,Literature and Social Science Edition) 

Keyword:  Industrial Co-agglomerationMarket PotentialIndustrial LinkagesRegional Wages IncomeSpacedependence;
Abstract: Optimizing the spatial distribution of industries and achieving the benign interactions between development efficiency and level of wages is an optimum way to promote transition and narrow the gap between the rich and the poor. This paper constructs a spatial economic model based on industrial linkages, creates a quantitative index of industrial co- agglomeration, and embeds market potential and industrial co- agglomeration into a framework to analyze the regional wages income mechanism. This will enable us to systemically analyze the underlying mechanism that determines how regional wages income has been affected by spatial industrial distribution in the three big city groups in the eastern,middle, and western parts of China. The results are as the following:(1) both market potential and industrial co-agglomeration can improve the regional wages income significantly;(2) the regional wages income is space-dependent, and different regions’ wages income may have different ways of increment according to the differences in regional market potential and patterns of industrial co- agglomeration;(3) an examination of different industries in the three city groups shows that market potential and industrial co-agglomeration’s influences on wages income are region-specific and industry-specific. Hence, differential regional development strategies and specified guidance of industrial distribution are necessary to guarantee the effect of market potential and industrial co-agglomeration, promote more developed areas’ wages income, and narrow the gap between different regions’ wages income.
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