Explore the Influencing Factors of Manufacturing Industry Agglomeration

Abstract

As the result of the amount of greenhouse gas emission, many countries has developed green economic that achieve sustain economy and protect environment. Sustainable economic development has became a trend, and an important part of its industrial agglomeration. There are theoretical and practical implementation of industrial agglomeration. This paper is going to talk about the industrial agglomeration of manufacture. Industrial agglomeration refers to firms in the same industry locating in the same geographic area. The regional similarity of their location results in so-called industrial externalities, referred to as external economies of scale by Marshall and localization externalities by Henderson. In this paper, the factors that cause industrial agglomeration of manufacture will be discussed. First of all, the raw materials is one of the factors. Raw materials are the resources used to make goods. Secondly, the labor market is also an important factor of industrial agglomeration. Thirdly, the policy will have a great impact on the industrial agglomeration in a certain region. The policy refers to the directives and targets set by the state, government and enterprises. In the case study, this paper has chosen California, which is famous for its home industry, and confirmed the above three influencing factors.