Industriat economy industrial economy, may 2014, www. Chinabt. Net krugman center, analyses china's industrial cluster by the northwestern university school of economic management. From the model, a number of ways and means of economic development can be found to promote industrial clustering in the western part of the country. By analysing data on industrial concentration in jiangsu province in the east, the paper examines the current state of the country's industrial clusters and suggests ways to accelerate policies to promote industrial concentration. The country should accelerate economic growth in the west through the rapid growth of urban populations, the improvement of transport conditions, the transformation of industrial convergence, the reduction of development imbalances in the east and west, and the promotion of balanced development. Keywords: core - peripheral theory regional economy regional industrial cluster catalogue number: f424. 1 bibliography number: article no. A: 1005-5800 (2014)05(c)-194-02 in recent years, as the economy continues to move at a rapid pace, the country's industrial industries have shown regional imbalances and wide disparities in industrial development between east and west; and in the context of regional industrial clustering, new and advanced industrial parks and industrial parks are concentrated in the east. The total output of our industry in 2013 was rmb 1996. 707 billion, or 80 per cent of GDP. As a result, industry is the backbone of our economic development, and it is the main source of economic development in the regions that is important for the growth of regional GDP. In response to its uneven development, this paper uses the krugman central peripheral model to analyse the current state of industrial clusters in the eastern part of the country and to make practical recommendations on the gap in the west through an analysis of industrial development models in the east. The main thrust of one of the centre's peripheral theories, krugman, is creatively based on the framework of analysis of the general equilibrium of monopolistic competition in dickheit and stiglitz, drawing on the content of the new trade theory, the new growth theory, using the iceberg trade cost theory in samuelson, to introduce the concept of space into the general equilibrium analysis framework, and to present the well-known "core-periphery" model, bringing space into the mainstream of economic research. The model assumes that there are two regions in a country: 1 (urban) and 2 (rural), while 1 is an industrial zone, producing only industrial products and not agricultural products. (c) each factor of production is used in a specific production sector, agricultural workers only produce agricultural products, and industrial workers only manufacture manufactured goods. Intraregional and interregional trade is possible for products from both sectors, but trade costs vary. Intra- and inter-regional trade in agricultural products is cost-free, intraregional trade in industrial goods is cost-free, but inter-regional trade has so-called “flag transport costs” (samuelson, 1952, 1954), which does not simply refer to transport costs, but includes all costs of selling industrial goods to another region, which assumes that trade costs are represented by losses occurring in the course of industrial goods from their origin to their destination, and in order to compensate for trade costs, firms will charge higher prices for their products in the markets of the exporting region than in the region. In the model, krugman argues that the geographical concentration of the industry is driven mainly by three effects: the “market proximity effect”, the preference of firms for larger market areas when choosing production zones, the fact that most of their products are sold locally, the small part exported to smaller markets, and the savings of transport and other costs in the distribution chain, i. E. Trade costs. The second is the “cost-of-living effect,” also known as the price index effect, which analyses the impact of plant location on local cost of living, where commodity prices are relatively low, which attracts large numbers of consumers to the region, thus saving consumers’ consumption spending. Thirdly, the “market crowding effect” or “local competitive effect” is that, where competition exists, manufacturers tend to concentrate in areas where there are relatively few competitors, i. E., where a large number of producers are concentrated together, the result is that some producers in the region concentrate in areas where there are relatively few producers. The greater the share of industrial spending, the greater the concentration; the more diverse the variety of industrial products, the greater the concentration, and the easier it is to create the causality of the cycle, or the accumulation. If the share of industrial spending and the diversity of industrial products is large, it may mean that, regardless of the degree of trade freedom, the economic system is bound to form a conglomerate structure, which is very powerful (or the attraction of the core) and similar to the black hole in the universe. The conditions that give rise to this situation are referred to as “black hole conditions”, which are usually excluded from model assumptions about economic systems. An analysis of the current state of industrial clustering in the east and west of the country and the corresponding preferential policies have led to rapid economic growth in coastal areas, which is a major reason for the widening of disparities between our coastal areas and the interior. This imbalance in economic development, however, is reflected in an unbalanced regional development strategy based on the principle of efficiency, which has made the eastern coastal region the hub for the manufacture of new non-agricultural light industrial products throughout the country, while the western region has gradually been reduced to peripheral areas dominated by extractive mineral resource bases and agricultural production. This paper takes the example of jiangsu province, where sunan, sino-sioux, and supei, for example, validates the mechanisms and evolution of the characteristics of the centre under the transition system. 2. 1 the maintenance and strengthening of the peripheral features of the centre in the transition period has led to a significant decline in transport costs in jiangsu and a significant improvement in the market trading environment. The data show that, until 2005, the characteristics of the rural periphery of the suan - manufacturing centres, central and north sudan - were generally maintained or reinforced. In 2005, the share of the secondary sector in south sudan increased to 66. 36 per cent in the province, close to two thirds. The share of the primary sector in the province was 77. 09 per cent in central and north sudan, both of which were higher than in the early years of the reform process. In terms of economic aggregates, the share of south sudan's GDP in the province has increased by 14. 42 percentage points in 30 years. The share of GDP fell by 4. 84 percentage points in sino-chinese and by 9. 6 percentage points in the province as a whole. This is consistent with the evolution of the share of industry. In comparison with south sudan (table 1), the secondary sector in 1978 was only 28. 44 per cent of the secondary sector in south sudan, and after 30 years it was 28. 32 per cent, largely unchanged. In 1978, the secondary sector in sioux north was only 30. 63 per cent, and in 2007 it fell to 26. 03 per cent. In terms of regional GDP, the share of GDP in south sudan fell from 47. 85 per cent in 1978 to 29. 04 per cent in 2007. GDP per capita fell by about 8 percentage points, and the share of GDP per capita in south sudan fell from 60. 57 per cent in 1978 to 31. 21 per cent in 2007 (and 18 percentage points)。
