The Agglomeration Of Producer Services And Economic Growth

Producer service is a kind of modern service industry with the characteristics of high concentration degree, high-level knowledge, wide radiation area and high employment rate. It has strong industry relationship and intensive human capital and plays an important role in promoting regional industry’s competitive power and the development of economy in a better and quicker way. Producer services, as the main part of modern service industries, have maintained a good momentum of development under bad situation of international politics and economic environment since the global financial crisis and have made a contribution to maintain steady and rapid economic growth in China. However, problems also exist in producer service industry, such as aimlessness, development lag, low proportion and lack of overall point of view. Resolving these problems has obvious practical significance for selecting suitable agglomeration pattern, promoting the industrial structure adjustment, changing the economic growth mode and improving economic efficiency and growth level. But at present, the study of producer service industry’s agglomeration pattern, spatial relevance mechanism of producer service industry and economic growth among cities, and its role in adjusting of regional economic structure and developing new competitive strength is not enough in China’s academic circles.This paper builts a unified theoretic analysis framework and specialization agglomeration> diversification agglomeration of producer services and the scale of spatial agglomeration of producer services indexes based on the theory of Marshallian externalities n Jacobs externalities and new economic geography, explores agglomeration effects of producer services from factors and market. We make a deep analysis of the agglomeration patterns of producer services of prefectural or higher level cities in all areas of China, which demonstrates the influencing mechanism of agglomeration of producer services on regional economic growth.Firstly, this paper has analyzed the effect of specialization agglomeration and variety agglomeration of producer services on economic growth based on controling the scale of agglomeration producer services from the comprehensive view of Marshallian externalities and Jacobs externalities. The results show that the specialization of producer services significantly promoted urban economic growth, while the effect of diversification on economic growth are not significant. This means that the effect of agglomeration of producer services on economic growth mainly for Marshall externalities in China. In the action of agglomeration of producer services on technology spillover, specialization agglomeration can effectively promote the diffusion and propagation of knowledge between producer service firms, and then promote urban economic growth, but diversification agglomeration of producer services failed to produce obvious technology spillover effect.Sencondly, this paper adopts a dynamic economic method of co-integration analysis> impulse response and variance decomposition to analyze empirically the effects of agglomeration of producer services on economic growth across286cities in China by establishing the panel date VAR mode. The results show that there exist long-term dynamic equilibrium relationships between the scale of producer services, specialization and diversification of producer services and urban economic growth. And there exists one-way causality relationship between specialization, diversification of producer services and economic growth. Specialization of producer services promotes significantly economic growth in the short term, and the long-term effects of which become decreased and weakened. In the prediction period, the effect of diversification on urban economic growth is not significant in the short term, while which is increasing with increasing size in the long term. The effects of specialization agglomeration and diversification agglomeration of producer services are complementary at different stages of urban economic growth.Thirdly, this paper constructs a theoretical and econometric model to exam the effects of spatial spillover effects of producer services on urban economic growth based on the framework of new economic geography. The results show that, the spatial agglomeration of producer services have significant effects on economic growth, and its effective action range of is100km. The effects of the agglomeration of producer services in the effective action range on economic growth have a descending order from east to west. There exist significant differences among the marginal effects of the spatial accessibility of producer services on different percentiles of economic growth. With economic growth increases, the marginal distribution of the spatial agglomeration of producer services in the effective range to the economic growth is increasing. Compared with underdeveloped cities, the spatial agglomeration scale of producer services has an greater effect on economic growth in the cities with higher level economic development.Fourthly, this paper builds theoretical and econometric model based on the integrated framework of externalities and new economic geography, and makes a study on the effects of the agglomeration of producer services on composition effects and competition effects of economic growth. The results find that, specialization and diversification agglomeration of producer services positively affect economic growth mainly from the supply side through short-term competitive factors, and the effect of specialization agglomeration is more significant. However, the spatial agglomeration scale of producer services focuses on the demand side to impact the economic growth through affecting the long-term adjustment of regional economic structure. The effect of specialization agglomeration of producer services is larger in the west than that in the east and central part, and the effects of diversification agglomeration are more significant in the eastern and central part. The effect of spatial agglomeration scale on economic growth is decreasing from east to west. With economic growth percentile increases, the effects of specialization agglomeration of producer services on composition effect and competition effect exhibit inverted U-shaped trend, but the promoting effect on economic growth through competition effect is more sustainable, and the effects of diversification agglomeration on composition effect and competition effect are increasing. The effect of spatial agglomeration scale of producer services on composition effect is increasing, but the effect on competition effect exhibits inverted U-shaped trend.Finally, this paper has summarized and concluded the mechanism of agglomeration of producer services promoting economic growth continuously and stably according to the theory and empirical analysis, and proposed polictial recommendations of selecting agglomeration patterns of producer services properly, adjusting the industrial structure positively, and then promoting the coordinated> stable and sustainable developing of regional economic.