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ENTERPRISE CO-OPERATION AND ITS ROLE IN CHINA'S REGIONAL DEVELOPMENT |
JIA Ruo-xiang1, LIU Yi2 |
1. Institute of Geographic Sciences and Natural Resources Research, CAS, Beijing 100101, China;
2. Graduate School of the Chinese Academy of Sciences, Beijing 100039, China |
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Abstract China's regional development has witnessed a good performance since opening up and reform, but the regional disparity has been widely enlarged with the establishment of socialist market, which violates the justice principle of regional development. Regional cooperation is one of main methods to gain the "win-win" effects both for the developed regions and for the under-developed regions. Since the establishment of socialist market economy system, enterprise plays a more and more important role in regional economy activity. The competition between enterprises becomes more and more furious under the surplus economy. Enterprise cooperation is proved to be an effective way to improve the enterprise's competitiveness and regional development.
The driving forces for enterprise cooperation varies in different milieu. They can be briefly generalized as the flowing:①the regional difference of production factors; ②for the improvement of market competitiveness; ③the need of specialization; ④conventional social networks. The production factors differ greatly and are complementary in China, especially in terms of labor force and technology. Enterprise cooperation can exert their different advantages. Enterprise cooperation is the gaming result of market transaction and internal management. The more enterprises specialized the more cooperation they have. The conventional social networks also contribute to the enterprise cooperation. This kind of cooperation exits amongst families, classmates, relatives and colleagues. It is the trust in conventional social networks instead of contract maintains enterprise cooperation.
Four different cooperation models are analyzed in this paper, including vertical cooperation, horizontal cooperation, virtual management and assistance to the designated regions. Virtual management is a new kind of cooperation. Assistance to the designated regions is the enterprise cooperation driven by government with the purpose to improve the development of un-developed regions. Now market mechanism plays a more and more important role in its practice. Enterprise cooperation affects regional development greatly in the aspects of local innovative network building, regional industrial structure optimization and inter-regional industry transfer, regional investment diffusion and regional disparity elimination.
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Received: 06 January 2003
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