Study On The Diversity Of China’s Service Industry Agglomeration Effect On The City Economic Development

Research on industrial agglomeration, early mainly concentrated in themanufacturing industry.As the world economy from the "industrial economy" to"service economy" in transition, service industry agglomeration problem becomes thefocus of scholars.In China, the status of the service industry in the national economy isgetting more higher and higher, to become the new engine of economic growth,therefore, in recent years, service industry cluster development issues have graduallybeen concern and attention of domestic scholars.On the basis of summarizing theindustrial agglomeration theory, the applications of industry agglomerationmeasurements,and the empirical research of industrial clustering effect,firstly,this papermeasures the agglomeration level of China’s service industry and city economicdevelopment level.Secondly,this paper builds econometric models of service industryspecialization agglomeration effect and diversification agglomeration effect,and uses thepanel data of284prefecture-level city in China2003-2010to make empirical analysis.After examining the national service industry agglomeration effect, then in accordancewith the division of the regional, city scale, this paper tests the difference ofagglomeration effects, and tries to find out the best service industry agglomeration levelof different types of city.Through the empirical test, the paper draws the followingconclusion.The measure result of service industry agglomeration level is that the serviceindustry agglomeration level is lower than the second industry,and there are differencesbetween regions,scales and industries.This is the measurement results of city economic development level and gap.On theone hand,the city economic development level is rising year by year,and there aredifferences between regions and scales.On the other hand,the gap of city economicdevelopment decreases slowly,and the main factors resulting the gap are the regionaldifferences,the second industry,and the concentration effect.This is the inspection results of service industry agglomeration effect.Firstly,in thenational scope, the agglomeration effects of specialization and diversification arepositive.Secondly, from the perspective of region, specialization and diversificationagglomeration effects are positive, and there are differences between regions.Thirdly,from the perspective of scale,the agglomeration effects of specialization are positive,and large cities is more than small and medium-sized cities.Fourthly,from the perspective ofregion and scale,service industry agglomeration effects on the economic growth dependlargely on the size of the city.The specialization agglomeration effects of all cities arepositive.The diversification agglomeration effects of large cities are positive,but that ofmedium-sized cities are negative. Fifthly,this paper find out the optimal agglomerationlevel of the different types of cities.Optimal specialization agglomeration level ofeastern,and central large cities are5.6053、25.5955.Optimal specialization anddiversification agglomeration level of western large cities are2.4715、7.5415.Based onempirical results and analysis, the end of this article gives brief suggestions.