Empirical Analysis on Internal Motivation of Furniture Industry Cluster Based on Provinces

Using predecessor’ research results for reference, this paper confirms that the internal motivation factors of furniture industry cluster mainly include five factors, i.e. scale economy, demand growth, external economy, industrial management level and traffic level. Taking GINI coefficient and HerfindahlHirschman index as dependent variables, collecting relevant data of furniture industry in 31Chinese provincial regions from 1989 to 2008, the paper makes a stationary test of relevant variables. Multiple regression and correlation analysis is done through the stepwise return method. Results show that preliminary element of production is the mainly motivation factor of present furniture industry cluster. The scale economy factor and demand growth factor have positive driving function not only to the production scale of furniture industry but also to the employment and enterprise quantity. But the function is limited. The traffic level factor has the weak driving function, which indicates that the furniture industry cluster because of differences in provinces is dropping. The wage variable in the external economy factor has appeared the separate strength. Highlevel production elements, for example industrial management level, play a weak positive function on the employment and enterprise quantity, but take a strong separate strength to the production scale cluster. It indicates that furniture industry has apparent laborintensive characteristics, which will cause the reverse change of furniture industrial cluster in provinces. Upgrade furniture industries is inevitable and necessary in the cluster areas.