The system dynamics simulation of the interactions between industrial agglomeration and regional economic competitiveness

Applying the method of system dynamics simulation, an SD model of the interactions between industrial agglomeration and regional economic competitiveness under the leadership of the government is founded on the base of qualitative analysis on the interactions between industrial agglomeration and regional economic competitiveness. This model has been tested by the analysis of the sensitivity of the overall trends and variables, and it proves that these two aspects could promote each other. The results show that, industrial agglomeration and regional economic competitiveness are closely related to each other. The enhancement of the regional economic competitiveness will increase the degree of industrial agglomeration. In turn, the increase of the degree of industrial agglomeration will enhance regional economic competitiveness. This shows that the industrial agglomeration and regional economic competitiveness in Jiangsu province are developing healthily under the influence of government policies.