Research on the Factors Affecting the Competitive Advantages of Regional Food Industry Based on Diamond Model

The problems which Chinese food industry facing are sustained growth and coordinated regional development. This paper firstly constructs a theoretical model of factors affecting the competitive advantages of regional food industry based on Diamond Model, then makes an empirical analysis based on the panel data of 31 provinces from 2004 to 2010. The results show that, such factors as agricultural resources, labor cost, industrial agglomeration and firm size have significant effects; such factors as industrial opening, TFP and enterprise marketing expenditures have different effects on different industries. Finally, this paper puts forward specific proposals to promote development of the regional food industry.