Research On Factors Of Producer Service Industry Agglomeration

In the background of reform and opening up policy, China’sexport-oriented economy is developing rapidly, especially the momentumin the manufacturing sector. With the global and domestic development ofeconomic environment, the export-oriented manufacturing industrydevelopment has become gradually weaken in recent years, which makesthe transformation of industrial structure considerable urgent and makesservice industry become the trend in this process. As aknowledge-intensive service industry providing intermediate inputs formanufacturing industry, producer service industry, the products andservices of which are in the end of global value chain, the producerservice industry plays a favorable role in the development ofmanufacturing industry, industrial upgrading and the transformation ofurban functions. However, compared with the manufacturing industryagglomeration, the producer service industry agglomeration in China isrising in the low process, which makes the economies of scale difficult toform and the stimulating effect on the economy limited. At present,scholars are concentrating their studies on the interaction betweenmanufacturing sectors and producer service sectors, while devote much less energy to the mechanism of the producer service industryagglomeration. Therefore, the study of the latter one has importanttheoretical and practical significance for the development of regionalindustrial.This paper establishes a framework under which factors ofproducing, space, urbanization, industry and government are considered.We make hypotheses that knowledge intensity, level of informatization,urbanization, agglomeration of manufacturing industry and governmentregulation are five major influencing factors that affect producer serviceagglomeration. Based on the discrepancy among sectors in producerservice industry, in the empirical part of this paper we estimate the impactof the influencing factors on different sectors separately. This paperexamines the degree of producer service agglomeration using city data ofJiangsu Province form2003to2009and discusses the factors thatinfluence producer service agglomeration, which is measured by locationentropy. The empirical evidence shows that in general, producer serviceagglomeration is affected by the five factors. It’s significantly positivelyaffected by factors of knowledge intensity, level of informatization, levelof urbanization but is not consistently affected by agglomeration of manufacturing industry and government regulation factors. Be specific tothe sectors, sectors of Wholesale, Retail, Research, Technical Servicesand Geological Prospecting’s agglomeration are influenced by each of thefive factors, however, other sectors are not influenced by all of the fivefactors simultaneously.