Research On Regional Comparison Agglomeration Effects Of Service Industry In China

Labor productivity growth is a concomitant of industry agglomeration. In the theory of industrial agglomeration, the agglomeration's influence on labor productivity is also called one of the agglomeration effects. Appropriate size and structure of industrial agglomeration will expand the scope of industry and generate positive agglomeration effects. Conversely, it will easily cause the diffusion of industrial agglomeration and produce negative effects. In the circumstances of economic globalization, the increasing proportion of services has become a generally accepted rule, and it also makes a wide range of concerns about the phenomenon of services agglomeration. In recent years, the services agglomeration shows an expanding trend from east coast to central& western inland, regional governments issued a serious of measures which encouraging the development of services agglomeration in order to enhance the competitiveness of local services. That is why we consider agglomeration effects of service industry in china as a practical issue which worth analyzing in service economy times.As a spatial form of enterprise organization, there are two structures of industrial agglomeration academically. One is agglomeration of the same type of industry, which is also called localization agglomeration. The other one is agglomeration of different type of industries, which is also called urbanization agglomeration. Different structures make different effects, based on the theory of industrial agglomeration, this thesis examines the influence of two agglomeration structures on labor productivity. The specific framework is as followed. On the basis of definition of core concepts and theoretical explanation, we establish the econometric models of localization agglomeration and urbanization agglomeration respectively by deriving production function, and then use panel data from 1996 to 2008 on province level in China to analyze empirically. After studying the overall agglomeration effects, we divide our country into seven regions, Northeast, North China, East China, South China, Central China, Northwest and Southwest. By examining and comparing the regional agglomeration effects, we obtain the empirical result.We get some main conclusions through theoretical analysis and empirical research. For one thing, in the whole country, the agglomeration effects under two structures are just on the contrary, the localization agglomeration effect is significantly positive, whereas the urbanization agglomeration effect is significantly negative. In seven regions, the localization agglomeration effect is significantly positive, whereas the urbanization agglomeration effect is significantly negative except East China. For another thing, in regional comparison under two structures, the effects in East China are higher than that of in other regions, the effects in Central China are lower than other regions relatively. As the econometric method has a strong policy orientation, we put forward some counter proposals at last, such as promoting the localization agglomeration of service industry, focusing on the match of services and manufacturing industries and strengthen the agglomeration development of services in Central China.