The Study On Collaborative Effects Between Manufacturing And Producer Services Across China

Based on the urban agglomeration economy upstream and downstream industry through the supply and demand relation formed their own economic of scale, and realized the coordinated development of the industry. The spillover effect accelerated the speed of industrial cluster. There is a positive correlation between urban agglomeration economy and industrial cooperative. But china is vast, so there exist obvious differences in the region. Since the reform and opening policy from 1978, further strengthen regional differences because of the government. Therefore, in order to realize the harmonious development of the regional economy, in order to put forward the targeted policy suggestions for expand industrial production scale and improve production efficiency, we must recognize the factors affecting industrial association.This paper constructs a simultaneous equation model of producer services and manufacturing, based on the linkage of upstream and downstream industries and endogenous agglomeration theory, and uses a two-stage fixed effects model to test the collaborative effects and endogenous agglomeration across 286 prefectural or higher level cities for the period of 2003-2008. And established spatial econometric model of section analysis development's change over time between the industries. Finally, this paper made the regional analysis. The results show that the producer services contributed to local agglomeration of manufacturing, while manufacturing did not create a sufficient market demand for local producer services. However, spatial econometric analysis reveals that once the spatial scale of agglomeration is extended to include neighboring cities within the distance of 100km, agglomerated manufacturing significantly promoted producer services within city groups, and there existed significant circular causal effects between the two sectors. The endogenous agglomerative effect was quite stable for the study period. Finally, this thesis put targeted policy suggestions, combined with the reality development situation...