Linkage Effects,Factor Structure and Industry Spread

Whether industry agglomerates or disperses depends on the interaction between centripetal forces and centrifugal forces along with the development of regional industry,which are affected by linkage effect and factor structure.Because of difference in linkage effect and factor structure,different industries present varied spread patterns.Industries with weak linkage effect and low labor density prefer original location,and usually spread among regions of similar economic condition.Industries of strong linkage effect and low labor density show strongest locational stickiness,and spread mostly by procedure transfer from the close to the distant.Industries with strong linkage effect and high labor density often spread by moving business chain to the other location.Industries with weak linkage effect and high labor density are most inclined to spread,which generally means relocating productive facilities in relatively distant periphery,possibly in different provinces.Governments need to recognize the different models of industry spread while formulating policy to harmonize industry development in different regions to improve it's effectiveness.