Industry Characteristics, City Characteristics And Source Of Producer Service Agglomeration Micro Research

Agglomeration of manufacturing has been studied sufficiently, but not for services. Traditional services are scattered distributed as their customers are scattered, but what about producer service since it services for intermediate demand which is usually agglomerated. There is no consistent research framework for the study on agglomeration economy of producer services, and generally they just simply list every potential factor. Here I will work my best to build a framework using three sources of externalities (say labor pooling, input sharing and knowledge spillover) from Marshall, to see whether the three externalities could well explain the agglomeration of producer services, and to observe the different channels through which the externalities exert influences between different industries, i.e. whether industry characters and city characters affect agglomeration of producer services, and what about the channels.