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A Study on Interactions between Specialized Market and Industrial Cluster

Author: ShiXiaoLi
Tutor: ZhangChunFa
School: Nanjing University of Finance and Economics
Course: Industrial Economics
Keywords: Specialized Market Industrial Cluster Centre-periphery Model Changshu Clothing Market
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 87
Quote: 0
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Specialized market and industrial cluster are two large newly economic phenomenon in developed coastal regions of China. Specialized market has strong function of agglomerating the regional economy. The industrial cluster takes specialized market as the core of information dissemination and price forming,and the industrial clusters and the specialized market have interaction obviously. Generally,in the process of formation of the specialized market,the existence or not of the industrial clusters influences the type of specialized market greatly. So,will be helpful for the development of regional economy. The specialized market and the industrial cluster are playing an important role in the development of regional economy increasingly.Based on principle of specialized market and industrial cluster,the thesis expounds the connotation,function and evolution of the specialized market; The thesis also illustrates the connotation and influence on the economy of industry cluster. A fully analytical model based on the principles of Paul R. Krugman’s the centre-periphery model was developed to analyze influence of the industrial clusters on the specialized market. We can conclude that it is will form original specialized market with the support of the industrial cluster and it is will form a distributional specialized market without the support of the industrial cluster. On one hand,the specialized market promotes formation and development of the industrial clusters,and it also expands the influence of industrial clusters and promotes the up-graduation of the industrial clusters; On the other hand,the industrial cluster provokes and supports the specialized market. The interaction of the specialized market and industrial cluster promotes the development of the regional economy.On the basis of the theory above,the thesis takes Changshu Clothing Market as an example and analyze the interaction mechanism of specialized market and local industrial cluster empirically. Firstly,The analysis about the development course,characteristics,development present situation,development prospect of Changshu clothing market,provides a good evidence in the above the basis of theoretical analysis on specialized market and industrial cluster,and then using econometric model shows the interaction between Changshu clothing market and regional industry,and the promotion on the regional economic growth.The sixth chapter is the conclusion and suggestion. This paper argues that using e-commerce system and strengthening the modern logistics system, can improve the efficiency and the distribution of market trade. At the same time, building cluster marketing system can improve the regional brand awareness.

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