Research On Producer Services Agglomeration Of The Midwest Cities

As the global economy transfer from industrial economy to service economy,service industry has gradually become the main engine of economic growth of many countries.Under the condition of relatively poor per-capita resources,increasing environmental stress and the constant intensifying international competition.In order to achieve industrialization and urbanization, we must speed up the development of service industry, improve the contribution of service industry to economic development and reduce the pressure of resource consumption and economic growth on ecological environment.The Metropolis’ fuction of allocation and distribution of resource are primarily through the services especially producer services.The core problem of economic transformation of China’s city is optimization of spatial layout of services,that is to say,the realization of urban agglomeration of services especially producer services. Producer services agglomeration is also one of the main reason which affecting Midwest’s undertaking industrial transfer of Eastern coastal areas.From the perspective of Midwest’s undertaking Industrial transfer,this paper analysis producer services agglomeration and its influencing factors. Put forward some suggestions that how Midwest cities strengthen the agglomeration of producer services in order to optimize the environment and conditions of undertaking industrial transfer.Firstly, considering the factors of industry and location,the paper analyses the mechanism of producer services agglomeration and its impact on urban economic development.Based on the statistic data of165borough cities of Midwest cities from2003to2009, we use location quotient method measuring the agglomeration degree of producer services. The results show that during the period,the degree of producer services agglomeration in Midwest cities is lower than Eastern area. Secondly, From the perspective of industry and area level,we analysis the differences of producer services agglomeration in central and western areas.From the perspective of industry,the most aggregate industries is financial services.From the perspective of area, the agglomeration degree of producer services of capital cities is higer than non-capital cities.This paper adopts the following variables,which is manufacturing agglomeration, government action, financial development, informatization level, city size and human capital input.Using these variables to make a measurement regression analysis of factors that affect the level of producer services agglomeration.The results show that manufacturing industries agglomeration has significant effect on producer services agglomeration in both central and western areas. Government action and financial development have positive impact on producer services agglomeration in central areas.However, city size and financial development have positive impact on producer services agglomeration in western areas.Finally,we make a conclusion of this paper’s research and put forward some suggestions that how to promote the agglomeration of producer services in Midwest cities.