This paper analyzed the effects of change in the industrial agglomeration to the growth of labor productivity in the Chinese manufacturing industry, considering the types of industrial composition, capital-labor ratio and scale of agglomeration.
We can see such results through the panel data analysis on 29 regions in China between 1999 and 2007 that; both of the same and different types of industry have negative effects to the growth of labor productivity in many regions; the growth of labor productivity owes not a little to the matter of respective businesses; the effects of capital-labor ratio to the growth of labor productivity are decreasing in the advanced regions; scale of agglomeration has a positive correlation with the growth of labor productivity.