| With the rapid development of China’s economy, the proportion of service industryin the national economy improved significantly, that the stimulating role of producerservices in boosting the whole service industry development is even more apparent, thereis an obvious phenomenon of spatial agglomeration. In this article, the author treatChina’s producer services spatial agglomeration as the research object, the tendency,formation mechanism and influencing factors of which has been analyzed. during thisprocess, the author used basic theories of the new economic geography, on the basis ofsystematic summary and fully draw on the achievements of domestic and foreignscholars.In theoretical studies, the transportation cost of the new economic geography hasbeen amended to information transmission cost, while building the theoretical frameworkof aggregate production services. On this basis, Exploring the impact mechanism of freetrade degrees, knowledge spillovers on Aggregate Production Service. Informationtransmission cost is defined as restrict factors of service trade in all, that includingdistance, information complexity, IT level and the system perfection degree, resulting indistribution change of producer services space through affecting free trade level. Spatialextent of Knowledge Spillovers affect capital formation costs, and differences ininterregional capital formation cost lead to changes in the producer services distribution,While the stock of knowledge and level of information technology determine the spatialextent of Knowledge Spillovers. Through theory analysis, the internal mechanism of ITlevel, the stock of knowledge, the system environmental factors and the informationcomplexity to the spatial gathering has been explained.In the empirical research, according to Gini coefficient (G), location entropy (LQ),and improved spatial agglomeration index, measuring the trend of national productionservices Agglomeration since2005, from both provincial and prefecture-level cities.According to the results, leasing and Business Services; scientific research, technicalservices and geological prospecting; information transmission, computer services andsoftware industry, these three industry concentration levels were higher than the other services and any other producer services. The concentration level of transportation,storage,postal and the financial industry is low, but the degree of agglomeration has beenincreased.Based on centralized development trend in China’s producer services, the regressionanalysis of each five producer services industry, that using the2009data of the266citiesabove the prefectural level, while taking the differences among the producer servicesindustry attributes and the imbalance of China’s regional development into account. Theregression analysis indicated that, the stock of knowledge, the four lagging serviceindustries concentrated degree, and the urbanization promote clustering development.The scale of government and the Aggregate Production Service development levelpresent negative correlation. The level of information influences on producer servicesaggregation less, which presents a negative correlation in the east, and a positivecorrelation in the Midwest. In the end, according to the research conclusion,the authorgives some promote proposals to the producer services agglomeration development. |