The Mechanism And Effect Of Co–agglomeration Between Producer Service And Manufacturing Industry: Theoretical Analysis And Empirical Verification

As a geographical feature of economic distribution activity, industrial agglomeration is considered to be one source of productivity and competitive advantage in a country(region). Industrial agglomeration is not only a continuous process of single industry geographically concentrated, but also more performance for co-agglomeration of related industries, it is generally characterized by integration of industries value creation activities associated with depth. Producer service and manufacturing industry in China already present strong agglomeration tendency, but in the value chain integration level, synergistic effect between the relevant enterprises’ value creation and innovation mechanism is not significant, it largely weakened not only the competitiveness of industrial agglomeration effect, but also formed block on the regional industrial co-agglomeration and the inter-city cooperation mechanism. Therefore, study on the co-agglomeration of producer service and manufacturing industry from wider cross regional perspective and multi-dimensions can broaden and deepen the industrial agglomeration theoretical research, it can make full use of the competitive advantage of industrial agglomeration in China, and can also help the micro economic organizations to make reasonable and effective strategy choice in expanding the value chain network and embedding in agglomeration economic circle. The above studies all have an important practical significance and a direct application value.The topic of industrial agglomeration can be traced back to Marshall(1890) who explored the industry "mixed" problem, the new theoretical basis on the innovative study of industrial agglomeration was founded until the 1990’s when new economic geography rised. Mechanism and effect of industrial co-agglomeration have become the focus of this research. Along the direction of the research, the academic circles at home and abroad have accumulated a certain number of research results.in the industrial synergy calculation and regional comparison of agglomeration degree. But these achievements between industry and space dimension does not form a stable "intersection", especially the existence of blind spots in theory of producer service and manufacturing industry agglomeration aspects of cross industry collaboration. Empirical analysis which is based on the specific facts of industrial linkage and spatial co-location in the area of Yangtze River Delta shows that the co-agglomeration of producer service and manufacturing industry has the dual attributes of industry and space, and there exists a bidirectional conduction characteristics betweenthem, and which determines the conduction efficiency is the institution variable. Based on this, the paper constructs a theoretical framework which is formed by three dimensions of "industry--space--institution". Within this analysis framework, the author takes the formation mechanism and the effect deconstruction of industrial co-agglomeration as a center of gravity, characterizes the determinants of industrial co-agglomeration between agglomeration mechanism and attempts to deeply analyze the endogenous mechanism of trans regional co-agglomeration between the associated industries. Among them, the theoretical analysis level is mainly derived from Venables(1996) vertical correlation model(CPVL) and the introduction of producer services sector, through the model deduction, from product association and industrial intermediate input interpretation of the formation conditions of cooperative cluster formation. The empirical analysis of industrial agglomeration level, taking into account the appropriate regional level should not be too high, so the paper takes 30 cities in the Yangtze River Delta region as an example,meanwhile, the basic industrial data is mainly based on the two digit code sample of productive service and manufacturing industry from 2005 to 2012., and then the paper makes an integrated use of VAR model, impulse function, SUR estimation of simultaneous equation, SEM model and a dynamic panel regression of econometric analysis methods or tools on the corresponding empirical response.The main conclusion of the research can be briefly summarized as follows:(1) the scale economy, value chain, cost saving, spatial proximity, business, institutional support is composed of the producer service industry and manufacturing industry from the industry,spatial linkage evolution as the main condition of cooperative clusters, but has the obvious industry and spatial heterogeneity. The city scale in the industrial cooperative formation and its effects in the process of replacement of agglomeration is an indispensable important factor;(2) the productive service industry in Yangtze River Delta agglomeration and agglomeration of manufacturing industries showing a certain fitting trend, but the overall level compared with the national provincial level has a certain gap. Strong correlation of industry spatial agglomeration degree and high industry accounted for the total combined with logarithmic combinatorial pairing the proportion is still low. The layout of the space between the development of producer services in transportation and communications of the producer service industry and manufacturing industry has always played an important role;(3) reflect the demand of manufacturing related availability has significant positive effects on the productive service industry location choice, and reflect the cost associated with the productive service industry also the availability of manufacturing location choice also has a positive and significant influence, but the degree of influence of the latter will be relatively a few bigger;(4) Industry association and knowledge stock all have significant positive effects on co-agglomeration, in the radiation of the central city, large central city such as capital city, its radiation function to the surrounding city is bigger than Shanghai’s. In a particular city, there is an equilibrium level of rent that make collaborative agglomeration the coordination degree of dual effect reach the maximum, and there exists an optimal citysize which makes the coordination degree of double effect function to promote labor productivity maximum.These conclusions have expanded the relationship between producer service and manufacturing industry, particularly, they also dredged the conduction process between industry attributes and space attributes. Specifically, the main innovations of this paper lies in: first we tried to integrate the three dimensions(industrial-space- institution) into a new analysis framework of industrial co-agglomeration and verified the influence of related factors on the industrial co-agglomeration with the relationship and strength based on industry and space heterogeneity, cleared the endogenous mechanism of industrial co-agglomeration in the meannwhile, from this we can avoid the defect of the overall analysis in-depth. At the same time, from two perspectives of value chain and urban space,the paper not only analyzed the generation mechanism and the dual effect of industrial co-agglomeration, but also revealed it’s generation and evolution process, from this we can avoid the limitations on a single view of the industrial agglomeration effect, and thus can make the research more practical significance. Based on this, the author tried to build a multi-dimensional countermeasures system which taking “maximize co-agglomeration net effect" as the fundamental purpose and “urban agglomeration area” as the main platform.The above research will provide a new way of thinking on spatial structure adjustment and industrial transformation & upgrading of the city.