Study on industrial agglomeration and economic growth—The evidence of Yangtze Delta Area

We investigate the linear or non-linear relationship between industrial agglomeration and economic growth in Yangtze Delta Area by adopting the analytical method of Brulhart & Sbergami(2009) and using Theil Index and urbanization as indexes of agglomeration. We find evidence that supports the “Williamson hypotheses”. The main findings are:(1) the relationship between industrial agglomeration and economic growth is changing with economic development, rather than simple linear; (2) the relationship between industrial agglomeration and industrial growth is non-linear; (3) urbanization boosts economic growth.