Analysis of the Influence of Local Government’s Behavior and Preference on Industrial Agglomeration Under Chinese Promotion Game
International Journal of Economics, Finance and Management Sciences
Volume 6, Issue 2, April 2018, Pages: 43-53
Received: Mar. 7, 2018; Accepted: Mar. 21, 2018; Published: Apr. 13, 2018
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Author
Chuan Yan, School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, China
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Abstract
Research content: Based on the framework of Chinese-style promotion game, a theoretical model to describe how local government behavior and preference affect agglomeration is made up, and empirical evidence is provided based on the samples from 282 cities in China. Innovation: Taking industrial connections as the grasp of the hand, different effects of local government behavior and preference on the agglomeration of manufacturing industry and production service industry are identified, which provides a new perspective for the explanation of the causes of agglomeration economy in China. Main conclusions: (1) In the Chinese promotion game, local government officials will promote local manufacturing industry agglomeration and producer services industry agglomeration for the maximization of their promotion profits, but prefer to promote manufacturing industry agglomeration. (2) The connection between producer services industry and manufacturing industry, and the connection within manufacturing industries will affect local governments’ industry selection preference, the former can induce local governments to tend to pull up the agglomeration of producer services industry, the latter can induce local governments to tend to pull up the manufacturing industry agglomeration.
Keywords
Promotion Game, Fiscal Decentralization, Agglomeration, Productive Service Industry, Industrial Association
To cite this article
Chuan Yan, Analysis of the Influence of Local Government’s Behavior and Preference on Industrial Agglomeration Under Chinese Promotion Game, International Journal of Economics, Finance and Management Sciences. Vol. 6, No. 2, 2018, pp. 43-53. doi: 10.11648/j.ijefm.20180602.12
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Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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