The Diffusion Of Producer Service In The Internal Of City

In2007, the added value of service has taken up69.4%of the world GDP, in high income countries this rate has even get to72.7%, the service industry has become the most important part of the world economy. Producer service industry contribute the largest part of the national economy, it lies in the ends of "smiling curve" providing the highest added value parts, has become the pillar industry of the developed countries.At present, China is at the crucial period of economy transition, allowing producer service industry’s strategic status and key role in the national economy, many areas in our country are developing producer services industry as the most important step to adjust industry structure and promote economic efficiency, but the development mode and performance are different from each other. The confusions areas faced in the process of development reveal that the lagging of theory research. In a city, weather the location of an industry is getting more and more concentrated (cluster in the city center business district or suburbs), or scattered evenly in many areas? What kinds of factors affect their location model? This paper is trying to explain these confusions. Focused on the industry characteristics of producer services, combing its characteristics of space layout in the city, the author puts forward the spread mechanism of producer service in a city and makes an empirical test, discussing the factors that influence industrial diffusion.There are five parts in this paper:puts forward theoretical framework on the basis of literature review; analyses the diffusion condition in a city, realize that industry differences of diffusion mode; conducts empirical test on the base of theoretical framework and understanding of the industry differences; presents the corresponding proposal based on the results of empirical test.The first part is the introduction, mainly introducing research background and significances, the framework of the research, also presenting innovation points from three aspects.The second part is the literature review, defining the concept of the producer services and diffusion, summing up the related literature on producer services’ characteristics, function and space distribution.The third part is the development situations and diffusion characteristics of producer service in big cities in china. First, analyze the current total amount and structure situation of the producer services by using added value as the index; Second, analyze the current total amount and structure situation of the development of producer services in12deputy provincial cities by using employ numbers as the index; Finally, analyze the industry differences and district differences of diffusion characteristics in those deputy provincial cities.The fourth part builds the diffusion model of producer service industry in a city and makes the empirical test. Choose resources endowment, information technology level, land cost, demand, institutional and urbanization level as the six factors according to the literature review, then set the model. Make an empirical text by using the12deputy provincial cities’panel data and ChengDu-WenJiang time series data, leading to the conclusion that the added value of secondary industry is the biggest factor that influences the diffusion pattern, followed by government size.The fifth part is the conclusion and suggestions. State that clearly understanding the characteristics of specific industry, paying attention to internal division of functions in a city, forming a good industrial development interaction between city centre-surrounding areas are very important. Based on the results of empirical test, making suggestions to promote the development of produce service, including promoting industrial upgrading, perfecting the legal system and improving the traffic communication facilitiesThe main innovations in this paper are:1. Try to build the diffusion model of producer service in a city on the basis of comparative advantage, new economic geography and urban economics, combining market factors and institutional factors comprehensively considering of two kinds of natural factors on industrial area non-uniform distribution.2. Select12deputy provincial cities’panel data for empirical research. Choose four industries that spread trend is obvious in those12deputy provincial cities, make an empirical test from the general and perspective industry respectively, finding that the added value of secondary industry is the most obvious factor to the spread of producer service industry.3. Chengdu-WenJiang case studies. Finding out that in comparison to consider information technology as the only factor, it is more significant to the development of producer services if information technology and traffic facilities both considered.The development of producer services is closely related to the whole area economy, this article only pay attention to the layout of producer services industry in the city, lack consideration of regional economy. At the same time if more suburbs data collected, the conclusion will be more persuasive. These are all shortcomings of this paper; it is also the future direction.