Research On Economy Effects Of Service Industry Agglomeration In The Yangtze River Delta

Since the1980s, the global economy has the general trend of transforming fromthe”industrial economy”to”service-oriented economy”,service industry has become animportant engine of world economic growth.Service industry agglomeration will notonly reduce transaction costs,improve conditions for innovation,increaseefficiency,change incentive means.At the same time,it also creates collective wealthlike information, professional system,reputation and so on.Because the effects comefrom agglomeration have profound impact on regional economic development,serviceindustry agglomeration has become a worldwide economic phenomenon under thebackground of globalization and knowledge economy.It is an important way ofimproving international competitiveness of service industry in a country.The service industry of the Yangtze River Delta has developed for a longtime,because the region has unique advantages in resources and culture.Along withrapid advance of industrialization,becoming perfect in infrastructure, acceleratingapparently in city changes,growing in people’s income,expansion of the openingpolicy in the Yangtze River Delta,the service industry in this region has developedapparently.The trend of agglomeration and economy effects come from serviceindustry agglomeration become clear day by day.This paper analyses service industryagglomeration of the Yangtze River Delta,checks agglomeration level with empiricalmeans,studys economic effects come from service industry agglomeration of thisregion,then we can give a specific operational way to select the mode of developingservice industry in this region and provide scientific evidences for the governmentdecision-making.Based on summarizing the existing research results,this paper builds a researchframework of analysing agglomeration effcts comes from service industryagglomeration of the Yangtze River Delta.First of all,by giving definitions of the service industry agglomeration andagglomeration effects,analysing mechanism of how agglomeration effects create,thepaper sets theory foundation for further analysis.On the basis of theoretical analysis,the paper measures agglomeration level ofservice industry agglomeration in this region.Then the paper studys condions ofservice industry agglomeration in the Yangtze River Delta from two aspects:agglomeration conditions and agglomeration mode.It uses locationentropy,concentration factor,space Gini coefficient to measure agglomerationlevel(two provinces and one city),providing realistic basis and data support for furtheranalysis.After collecting and dealing with datas,we proceed model construction andempirical study from two aspects:the broad sense and the narrow sense.Finally,the paper summarizes the empirical research conclusions, gives policysuggestions to motivate development of service industry in the Yangtze River Deltaaccording to the related empirical research results.