An Analysis of the Economic Development Threshold Effect of Employment Density in Shanghai's Consumer Goods Industry within the Context of New Manufacturing, Using Comparative Insights from International Metropolises

Abstract

The service-oriented manufacturing sector is a crucial driver of future economic growth in the context of continuous technology advancements and industrial revolutions. This research develops an economic development threshold model to evaluate job density in the consumer goods sector in Shanghai and Tokyo, utilizing data from 2007 to 2016. The research investigates the impact of varying population densities on the relationship between employment in consumer goods sectors and urban economic growth. Analyzing Tokyo's circumstances aids in comprehending Shanghai's current market situations and potential future prospects. The consumer goods sector in Tokyo exhibits a threshold of 0.608, serving as a limit for economic stimulation, which results in adverse effects when beyond. Shanghai attains favorable economic growth contributions when its consumer goods sector exceeds the 0.329 threshold level. The consumer goods business in Tokyo has surpassed its vital turning point, but Shanghai's sector has yet to attain that pivotal moment. The consumer sector in Shanghai is underutilized in its economic potential relative to Tokyo. The light industry sector in Shanghai is poised for significant expansion due to rising population density, potentially reinstating its position as a premier hub.