Testing Problems of Agglomeration Degree Algorithms Based on Shaanxi Data

In order to test potential problems of agglomeration degree algorithms, EG algorithm is presented to measure the industrial agglomeration for each of 90 industries and their sub-industries based on micro data of firms in Shaanxi. Conclusions are drawn that: (1) Modifiable areal unit problem exists because of decreasing agglomeration with smaller geographic areas aggregation; (2) Average agglomeration of sub-industries is mostly higher than their parent industries; (3) HHI has insignificant correlation with industrial agglomeration; (4) Agglomeration measured based on data of manufacturing industries has similar results with data of overall industries.