Regional Differences In China's Service Industry Agglomeration

Since the 1990s, with the global trend of increased economic services, rapid growth of China's service sector has become an important pillar of modern economic growth. But through the simple observation of reality, we find that the development of China's service sector showed a strong spatial characteristics. In addition, we also observed that the service sector have taken place in the eastern coastal areas to the concentration of a broad spatial agglomeration phenomena, to the east coast as the center, central and western regions of the outer shape. This prompted us to think about the following questions: (1) At present, China's service industry spatial concentration mechanism? (2) The difference in spatial concentration of China's service industry What are the characteristics? (3) This difference is again spatial agglomeration What causes it? Reflections on these issues constitute the motivation of this research, this paper tried to space-based economics research methods, new economic geography perspective, concentrating in regions where differences in the service sector to provide a new explanation.First of all, this concentration of services within the health and exogenous mechanisms for a general description, and spatial concentration of China's service industry experience to conduct a comprehensive description of the situation. Through the country's eastern, central and western regions to conduct the service industry concentration measure, we found that clustering the development of China's overall regional service is uneven, and service areas are mainly concentrated in the eastern part of the service sector followed by decreasing concentration of the level of three regions, while concentrated in the service sector industries are also significantly higher than the level of central and western regions.Taking into account increasing returns to scale localization is a key factor in the service industry concentration, while its also reflected a decline in unit costs, so we gather from the service industry and the service industry labor productivity point of view, will gather the level of service to the service production role in promoting the efficiency of service is defined as the clustering effect, and using quantitative analysis method for the country's eastern, central and western regions the issue of differences in the service industry spatial concentration empirical analysis. In the analysis we found: For my whole and eastern regions, there is a significant concentration effect, and the combined effect of the eastern part of the service industry is far greater than the central and western regions; the same time, the country's eastern, the service level is a concentration of endogenous variable embodies the shape of the service industry labor productivity and the level of service clustering mutually reinforcing virtuous cycle, which is China's central and western regions are diametrically opposite. In our view, it is this combined effect of regional differences are caused by the country's eastern, central and western regions important reason for differences in the service industry clustering.Subsequently, the article on China's services sector, the reasons for differences in the region were concentrated further analysis. Articles that such differences in both physical geography and resources, and other objective factors, but also policy and institutional choices in subjective factors. Since reform and opening, the central and local governments on the eastern part of China taken by the various tendentious fiscal, monetary policy, industrial policy and regional development policies for service industries and the accumulation of elements to create a good environment. From the objective factors point of view, the eastern region has a good geographic conditions and economic, and social foundation for the services sector, concentrated development has provided an excellent foundation conditions, and relatively disadvantaged central and western regions appeared in a number of service elements of outflows, resulting in combined effect of the service industry can not be fully realized. At the same time, the service industry itself has a strong concentration of self-effect, the service industry clustering to promote the services sector productivity, and high productivity has attracted more elements of concentration, making the eastern, central and western regions had a tremendous the gap between the level of the service sector concentration.