Coordinated Industrial Development of Changchun and Jilin in Chang-Ji-Tu Pilot Zone

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1 Iteratioal Busiess ad Maagemet Vol. 7, No., 203, pp DOI:0.3968/j.ibm ISSN X [Prit] ISSN [Olie] Coordiated Idustrial Developmet of Chagchu ad Jili i Chag-Ji-Tu Pilot Zoe CHENG Shujia [a],* ; ZHANG Na [b] [a] School of Ecoomics, Chagchu Uiversity, Chagchu 30022, Jili Provice, Chia. [b] Dadog No.2 Middle School, Dadog 8000, Liaoig Provice, Chia. * Correspodig author. Received 4 May 203; accepted 20 July 203. Abstract With the acceleratio of developig process of Chag-Ji-Tu pilot zoe, the ecoomic exchages betwee the two cities of Chagchu ad Jili become more ad more frequet. The issues of itegratio ad idustrial coordiatio of Chagchu ad Jili have come ito the public cocer. Ways ad correspodig strategies to execute the idustrial coordiatio of Chagchu ad Jili are brought up o the basis of quatitative aalysis i the status of idustrial developmet as well as beig clear about the obstacles i idustrial developmet of the two cities. Key words: Chagchu ad Jili; Idustrial; Coordiatio CHENG Shujia, ZHANG Na (203). Coordiated Idustrial Developmet of Chagchu ad Jili i Chag- Ji-Tu Pilot Zoe. Iteratioal Busiess ad Maagemet, 7 (), Available from: php/ibm/article/view/j.ibm DOI: INTRODUCTION Curretly, the regioal idustrial coordiatio has become the treds of ecoomic ad social developmet. Sigle iter-city competitio which gradually replaced the regioal competitio i urba agglomeratios has become the moder model of regioal developmet i the coordiatio across admiistrative regios. Guagfo i Guagzhou Provice, Chagsha-Zhuzhou-Xiagta City Group i Hua Provice, ad Sheyag-Fusha Itegratio i Liaoig Provice are the successful exploratio ad practice of regioal itegratios withi provice Scholars also explored coordiated idustrial developmet i regioal itegratio from differet aspects. HU Jiewu et al. (202) aalyzed the effects of corporate cross-regioal mergers ad acquisitios to regioal idustrial structure ad ecoomic growth. NIE Xiaotao (202) thiks that the covergece of iter-city idustry impairs the overall competitiveess of metropolita area. The competitiveess of the metropolita area ca be ehaced by itegratig the distributed resources i the regio, carryig out idustrial divisio of labor ad cooperatio with specific targets, extedig idustrial chai ad achievig specializatio of productio. Besides, the istitutioal barriers as well as the path of itegratio are also i the focus of the scholars (Wag, 2007; Lü, 2004; Xue, 2004; Peg, 2009; Li, & Che, 2003). From the aspects of coordiated idustrial developmet i Jili Provice, PIAO Yizhe ad JIN Zhaohuai (2009), WANG Rogcheg ad ZHANG Yuyi (2008) have respectively take Ya-Log-Tu regio of Yabia Korea Autoomous Prefecture ad uclear regio i Jili Provice for examples. The characteristics, as well as strategies of implemetatio ad itegratio i coordiated developmet of regioal idustry are discussed ad proposed respectively o the basis of aalysis of characteristics ad problems i regioal idustrial developmet, i order to explore the fuctio ad mode of regioal coordiated idustrial developmet i ehacig the ecoomic competitiveess of less developed areas. I the backgroud of regioal cooperatio, the coordiated idustrial developmet of Chagchu ad Jili has gradually come ito the spotlight. It will realize the optimizatio of idustrial structure as well as ratioal distributio of idustrial space i cetral Jili Provice ad eve i the whole provice based o bigger ad stroger idustry i the two cities; it will also realize the re-allocatio of productio factors as well as adjustmets 29 Copyright Caadia Research & Developmet Ceter of Scieces ad Cultures

2 Coordiated Idustrial Developmet of Chagchu ad Jili i Chag-Ji-Tu Pilot Zoe ad formig ew capital orgaizatio ad techical orgaizatio by the law of idustrial developmet across space, regio, idustry ad owership, i order to form the large eterprises ad eterprise groups cetered idustrial structure. To play the fuctio of agglomeratio of Chagchu ad Jili i order to fully implemet the atioal strategies of Chag-Ji-Tu pilot zoe ad revitalizatio i the ortheast.. DATA AND METHODS. Defiitio o the Study Area ad Data Specificatio The study area is the urba area of Chagchu ad Jili, as well as the 9 coutries uder the jurisdictio of the cities such as Jiutai, Dehui, Noga, Yushu, Huadia, Jiaohe, Shula, Yogji ad so o. All the data metioed i the study is from Chagchu Statistical Yearbook 2006, Chagchu Statistical Yearbook 202, Jili Social ad Ecoomic Statistical Yearbook 2005, Jili Social ad Ecoomic Statistical Yearbook 2009, Jili Statistical Yearbook 2006, ad Jili Statistical Yearbook 202. Due to the little output of ferrous metal miig idustry, o-ferrous metal miig idustry, ad other miig idustries i Chagchu, as well as tobacco idustry, educatioal ad sports goods, ad waste resources ad materials recyclig ad processig i Jili, so the locatio quotiet ad agglomeratio idex measured i this study oly refer to 37 idustries of the 40 idustries ivolved i the Yearbook..2 Measuremet Methods.2. The Formula of Locatio Quotiet ad Agglomeratio Idex () LQ d d D D = i i i i I which LQ represets the locatio quotiet of idustry i to its higher-level regio, d i represets the d i employmet or gross output of idustry i. represets the sum of employmet or gross output of idustries i the regio, D i represets employmet or gross output of idustry i i its higher-level regio. D i represets the sum of employmet or gross output of idustries i higher-level regio. m m t it = ( ijt ij0 ) j= (2) j= S q q t ijt ijt ij0 S = ( q q ) (3) Aijt = Sijt Sit (4) I the equatios above, (0-t) refers to the selected time period of idustrial Agglomeratio Idex. I this period, to study idustries i m regios, i which the iitial ad eded gross output of idustry i i regio j durig the selected period are q ij0 ad q ijt respectively. S ijt is the average growth speed of gross output of idustry i i regio j. S it is the average growth speed of gross output of the idustry i i regio j s higher-level regio durig (0- t) period. A ijt i the equatio above is the Agglomeratio Idex to the idustry i i regio j. The criteria are as follows: If locatio quotiet LQ< ad agglomeratio idex A, the idustry is at a formative stage of comparative advatage idustry; if locatio quotiet LQ ad agglomeratio idex A, the idustry is at a growig stage of comparative advatage idustry; if locatio quotiet LQ ad agglomeratio idex A<, the idustry is at a mature stage of comparative advatage idustry; if locatio quotiet LQ< ad agglomeratio idex A<, the idustry is i a recessio of comparative advatage idustry which will ot be discussed i the study..2.2 Similarity Coefficiet The idustry system of Jili Provice formed i the period of atioal key projects had a heavy hue of plaig ecoomy ad iterregioal market was segmeted seriously. The ideas of Large ad Comprehesive City as well as Small but Comprehesive City made the govermets of Chagchu ad Jili oly cosider their ow iterests i idustrial developmet, which led to cotiuously strivig for projects ad ivestmets. Fially the vicious competitio resulted i a similar idustrial structure of the two cities. I this study, we use the idustrial structure similarity coefficiet raised by Iteratioal Idustry Research Ceter of Uited Natios Idustrial Developmet Orgaizatio (UNIDO) to aalyze the idustrial covergece of the two cities: k k k A 2 2 B Ai Bi Ai Bi i= i= i= S X X X X = (5) I formula (5) S A B is the Similarity Coefficiet i regio A ad regio B respectively, 0 S, if S=0, it represets the idustrial structure of the two regios are completely differet; if S=, it represets the idustrial structure of the two regios are idetical. Larger value of S idicates more similarity of idustry structure i the two regios..3 Itesity of Ecoomic Ties Chagchu ad Jili are called dual core of ecoomic developmet i Jili Provice. The two cities have close ecoomic ties i idustrial developmet ad ecoomic factors flow of persoel, resources, techology, iformatio ad so o. I this study, absolute amout of the ecoomic liks is used to examie the itesity of ecoomic ties betwee Chagchu ad other cities i Jili Provice. The specific formula is show below: R = PG P G D (6) 2 ij i i j j ij I formula (6) R ij represets the absolute amout of ecoomic ties betwee the two cities. P i ad P j refer to the gross output of city i ad city j respectively. G i ad Copyright Caadia Research & Developmet Ceter of Scieces ad Cultures 30

3 CHENG Shujia; ZHANG Na (203). Iteratioal Busiess ad Maagemet, 7(), G j refer to o-agricultural populatio of the two cities. D ij is the distace betwee two cities. I this study, oagricultural populatio, regioal gross output, legth of iterurba railway lie are used to calculate the itesity of ecoomic ties betwee Chagchu ad other cities i Jili Provice icludig Jili, Liaoyua, Sipig, Toghua, Sogyua, Baisha ad Yaji i Yabia Korea Autoomous Prefecture. 2. RESULTS AND ANALYSIS 2. Promiet Heavy-Duty Idustrial Structure Accordig to locatio quotiet ad agglomeratio idex of 37 idustries i Chagchu ad Jili, the competitive idustries i growth period i the two areas ca be listed as follows. Table Competitive Idustries i Chagchu Area Competitive Idustries Locatio Quotiet Idustry Agglomeratio Idex Agro-food processig idustry Food Maufacturig Pharmaceutical Maufacturig No-metallic mieral products idustry Fabricated Metal Products Geeral equipmet maufacturig Special equipmet maufacturig Trasportatio Equipmet Maufacturig Commuicatios equipmet, computers ad other electroic equipmet maufacturig Table 2 Competitive Idustries i Jili Area Competitive Idustries Locatio Quotiet Idustry Agglomeratio Idex Black metal miig idustry No-ferrous metal idustry Nometal miig idustry Food Maufacturig Chemical materials ad chemical products maufacturig Maufacture of Chemical Fibers No-ferrous metal smeltig ad rollig processig idustry Electrical machiery ad equipmet maufacturig Commuicatios equipmet, computers ad other electroic equipmet maufacturig Fabricated Metal Products It ca be see from the tables above: I the regioal gross output of the two cities, heavy-duty idustry such as trasportatio equipmet maufacturig, geeral equipmet maufacturig, chemical materials ad products maufacturig, chemical fiber maufacturig ad so o has a higher proportio. Thus, the focus ad basis of Chagchu ad Jili s idustrial developmet is heavyduty idustry, ad with the developmet of trasportatio equipmet maufacturig, chemical materials ad products maufacturig, chemical fiber maufacturig, pharmaceutical maufacturig, etc. which are at the growig stage of comparative advatage idustry, the characteristic of heavy-duty idustry structure will become more promiet. 2.2 Covergece of the Idustrial Structure ad Divergece of the Stregth The calculated Similarity Coefficiet of the two cities i 2005 ad 20 are ad respectively, idicatig a covergece of idustrial structure. Nevertheless, the stregth ad ature of the same idustry is ot the same. Take the trasportatio equipmet maufacturig for istace, i Chagchu it belogs to the idustries of comparative advatage whose output accouts for 96.59% of the idustry s gross output i Jili Provice, while the umber of Jili is oly 2.30% though there exists trasportatio equipmet maufacturig i Ecoomic Developmet Zoe ad Hitech Idustrial Developmet Zoe of Jili. Chagchu s car maufacturig accouts for 20.8% of the atioal market share whose sales reveue is oly secod to Shaghai. Chagchu is the oly city whose sales reveue raks top 0 i the Northeast of Chia. Obviously, the trasportatio equipmet maufacturig i Chagchu is i a extremely strog stage. 2.3 Sigle Core Idustries The core idustries of Chagchu ad Jili are too sigle, such as the output of trasportatio equipmet maufacturig accouts for 73.8% of the gross output i 3 Copyright Caadia Research & Developmet Ceter of Scieces ad Cultures

4 Coordiated Idustrial Developmet of Chagchu ad Jili i Chag-Ji-Tu Pilot Zoe Chagchu area, the added value of chemical materials ad chemical products maufacturig, o-metallic maufacturig ad ferrous metal smeltig ad pressig idustry accouts for 52.3% of the gross output i Jili area. Such a sigle core idustry will become a obstacle to optimize the idustrial structure. 2.4 Tighter Ecoomic Liks Betwee Chagchu ad Jili Table 3 The Ecoomic Liks Betwee Chagchu ad Other Cities Cities value Chagchu-Jili Chagchu-Sipig Chagchu-Sogyua Chagchu-Liaoyua Chagchu-Baicheg Chagchu-Baisha Chagchu-Toghua Chagchu-Yaji Obviously, the value of ecoomic liks betwee Chagchu ad Jili is much bigger tha the ecoomic liks betwee Chagchu ad other cities i Jili Provice. The frequet ecoomic activities betwee the two cities of Chagchu ad Jili are iseparable from the idustrial associatio of the two cities. Recet years the more ad more frequet flow of people ad ecoomic exchages have a positive impact o ecoomic liks betwee the first ad secod largest cities i Jili Provice. 3. WAYS TO COORDINATED INDUSTRIAL DEVELOPMENT Accordig to the characteristics ad problems of idustrial developmet i Chagchu ad Jili, coordiated idustrial developmet of the two cities should follow the ways as follows. 3. Ehacig Corporate Mergers ad Acquisitios Eterprise groups via mergers, joit ad restructurig to achieve scale expasio ad ehace their overall competitiveess. Chagchu ad Jili were the two key costructed ad major cities i Jili Provice i the First Five-year Pla, where plaed ecoomy has bee implemeted for a log time. It made the state-owed ecoomy take large proportio while private ecoomy did ot grow much, foreig capital was uderutilized ad ecoomic developmet lacked vitality. So o oe had we eed to make full use of the tradig platform of property rights i corporate restructurig ad brig i foreig capital as well as private capital. Meawhile, key eterprises must cotiuously optimize their asset structure, adopt flexible strategies to achieve the growth of corporate earigs. O the other had, we must rely o the ecoomic behavior of eterprises to break the blockade betwee regios ad market segmetatio of Chagchu ad Jili, promote the iter-regioal free flow ad optimized allocatio of resources ad productio factors, ad elimiate the iter-idustry, iter-regioal ad iter-owership barriers of eterprise associatio. 3.2 Cluster Developmet of Competitive Idustries The idustries i the regio of Chagchu ad Jili have problems as repeated costructios, vicious competitio, isufficiet iovatio ad so o, through techical, istitutioal ad orgaizatioal iovatio to coect ad exted existig competitive idustrial chai of the two cities ad to costruct competitive idustrial cluster. It is a effective way ot oly to ehace the competitive advatages of the two cities but also to polarize the ecoomic growth. O the basis of existig idustrial park of Chagchu ad Jili, we eed to build competitive idustrial cluster i order to impel ecoomic factors to flow betwee the two cities, brigig ratioal spatial combiatio of the factors as well as the improvemet i quality, quatity, ad efficiecy of the combiatios. Ultimately, we ca achieve ratioal layout, structural adjustmet, ad orgaizatioal trasformatio i idustry of the two cities. 3.3 Govermet Guide Itegrated with Market-Drive I the coordiated idustrial developmet of Chagchu ad Jili, o oe had we eed the guide of govermet o the other had we eed to itegrate the effects of govermet ad market, ad to cotiuously improve the system ad structure complyig with market supply ad demad. Because of the profoud ideological ifluece of the plaed ecoomy i Jili Provice, local govermet still has strog power to direct ifluece ad itervee i local idustry. Lackig of developed market ecoomy ad soud istitutio hidered the coordiated idustrial developmet of the two cities. Hece, Chagchu ad Jili should dilute the cosciousess that govermet is the ecoomic subject, regulate the fuctios of govermet, ad cotiuously reform the ecoomic system. Meawhile, the two cities should also abolish ad revise the repellig local policies ad regulatios i order to actively promote the coordiated idustrial developmet of the two cities, ad provide a favorable eviromet for coordiated idustrial developmet by buildig factor markets for the two cities as well as makig relevat policies ad regulatios to promote the free flow of product ad ecoomic factors. 3.4 Producer Services Chagchu ad Jili should vigorously develop the fiacial isurace, research ad developmet, iformatio services, advertisig, exhibitio, logistics, accoutig, law, ad various forms of producer services required i coordiated idustrial developmet. Besides, the two cities should also improve the system of idustrial maagemet, appropriate stregtheig the govermet s ability i guide of idustrial plaig ad Copyright Caadia Research & Developmet Ceter of Scieces ad Cultures 32

5 CHENG Shujia; ZHANG Na (203). Iteratioal Busiess ad Maagemet, 7(), overall coordiatio. Let the idustrial authorities as well as idustry associatios to play their roles i promotig idustrial developmet. 3.5 Lad Policy The reasoable supply of lad is based o the eed of coordiated idustrial developmet ad is accordig to the characteristics of various idustrial agglomeratio belts o the basis of ratioal utility of lad i Chagchu ad Jili. We should build a strict, scietific ad effective mechaism of lad maagemet to esure that lad use is coheret with the directio of idustrial developmet. We also eed to esure the sustaiable developmet of lad use, arrow the threshold for project etry, ad build laditesive mechaisms. I additio, the use of agriculture lad especially the cultivated lad should be strictly cotrolled. Repetitive costructio should be preveted accordig to the relevat lad policy. Here we especially eed to declie the approval of lad use for uauthorized projects of high eergy cosumptio, high water cosumptio ad evirometal pollutio. We also eed to reverse the tred of developmet from carig about the outside ad quatity to carig about the iside ad quality. 3.6 Ifrastructure Coordiatio Well-developed trasportatio etwork ca realize the free flow of capital, iformatio, techology, labor ad other factors of productio. It also beefits the coordiated idustrial developmet of the two cities. The govermet eeds to further develop the road ad rail etwork betwee cities ad betwee city ad tow. Besides, it also eeds to icrease the ivestmet of ifrastructure i the couties outside Chagchu ad Jili. By the device of stock issue, fuds set-up, local bods issue ad other fiacial istrumets to provide moey for ifrastructure costructio. For example, build a Chagchu or Jili cetric half-hour or oe-hour ecoomic circle, ad build the traffic lik Chagchu Noga Dehui Yushu Jiaohe Huadia Pashi Gogzhulig Chagchu i order to stregthe the ecoomic ties betwee other cities i Jili Provice, ad give full play to the pole fuctio of the two cities i ecoomic growth. 3.7 Techological Iovatio ad Guaratee System of Talets I order to achieve the coordiated idustrial developmet ad the optimizatio of idustrial structure, the govermet should ecourage iovatio i techology as well as costructio of talet market. The govermet also eeds to do the followig: ratioal utility of huma resources, acceleratio of talet market costructio ad the reform of system ad mechaism, ratioal flow of talet ad full play the fuctio of idustry of employmet guidace. Guide ad promote labor cotiuously to tertiary idustries to solve structural cotradictios of labor allocatio. Improve the eviromet, icrease the itroductio of talet, make plas to absorb labor ad itroduce various levels of talet ad build a reasoable structured, flexible, ope, moder labor force traiig system. REFERENCES Hu, J. W., Zhag, Q. S., & Hu, L. (202). Regioal Idustrial Itegratio ad Ecoomic Growth Based o Crossregioal Mergers ad Acquisitios. Chia Soft Sciece, 06. Li, X. Y., Che, Z. N. (2003). Ecoomic Itegratio Model ad Strategy Research of Pearl River Delta. Forward Positio i Ecoomics, Z. Lü, L. C. (2004). A Exploratio to a Few Issues about the Itegratio of Idustries. Joural of Guagzhou Uiversity (Social Sciece Editio), 08. Nie, X. T. (202). Idustry Cosolidatio i Metropolita Ecoomic Developmet i Pearl River Metropolita Area. Market Ecoomy ad Prices, 0. Peg, C. H. (2009). The Difficulties ad the Coutermeasures of the Idustrial Readjustmet i the Pearl River Delta Regio. Liga Joural, 03. Piao, Y. Z., Ji, Z. H. (2009). Idustrial Itegratio of Ecoomic Itegratio i Ya-Log-Tu Pilot Zoe. Ecoomic Review, 03. Wag, S. J. (2007). Ecoomic Itegratio i Metropolis Circle: Prisoer s Dilemma Perspective. Fiace ad Ecoomics, 9. Wag, R. C., Zhag, Y. Y. (2008). Idustry Cosolidatio i Cetral Core Areas of Jili Provice. Joural of Jili Busiess ad Techology College. Xue, J. J. (2004). The Coformity & Cooperatio of the Idustries i Metropolis Circle Regio. Moder Ecoomic Research, Copyright Caadia Research & Developmet Ceter of Scieces ad Cultures

International Journal of Business and Social Science Vol. 2 No. 20; November 2011

International Journal of Business and Social Science Vol. 2 No. 20; November 2011 Iteratioal Joural of Busiess ad Social Sciece Vol. No. 0; November 011 116 Research o Scietific ad Techological Cooperatio Network of Cities i Pa-Yagtze River Delta of Chia:Based o Social Network Aalysis