Effect Producer Services Industry Agglomeration

Industrial agglomeration has become the attention of academics and policy makers as animportant way of economic growth at present. In the recent years, the development ofindustry in the development of our country’s economy still plays a dominant role，although theproportion of service industry of national economy gradually rises. And the phenomenon ofindustrial cluster mainly occurred in the industry in our country. What is undeniable is thatservice industry plays a more and more important role in economic development，andindustrial structure obviously turns from the industrial economy to the service one. Withrespect to research on the relation between producer services and industry，scholars generallybelieve that they interact with each other. If the producer services development is one of theimportant influence factors of industrial agglomeration，How to develop the producer servicesto drive the industrial agglomeration，so as to promote the upgrading of industrial structureand economic growth, will become a current problem to be solved.In this paper，we try to explore the mechanism how producer services influence theindustry from three perspectives——the division of labor，transaction cost and competitiveadvantage to explore the influence of producer services to industrial，by analyzing the relatedliterature and theory of industrial agglomeration of producer services. In order toquantitatively analyze the influence of producer services on the industrial agglomeration，thispaper use the LQ（Location Quotient） to test the level of the agglomeration of eachprovince’s industry，and analyze that how producer services promote industrial agglomerationfrom the level of whole producer services and specific producer services. At last，countermeasures and suggestions are brought forward according to the empirical results.Based on the above theoretical and empirical analysis, this paper initially formed thefollowing conclusions：（1）The affection the producer services put on agglomeration works mainly in3perspectives——promoting the division of labor，lowering the transaction cost and enhancingthe competitive advantage. First of all，the externalization of the traditional industrialenterprise’s internal service activities deepen the degree of labor division of industrialenterprises, improve the production efficiency. Second，the development of producer servicescan simplify trade way， reduce the products’ supply transaction costs. Finally， thedevelopment of producer services improve competitiveness and promote the industrialagglomeration.（2）The productive service industry is developing rapidly in recent years，and the industrial agglomeration degree also increases year by year, but the gap between regions ismore and more obvious. The eastern coastal areas of phase to obtain the first mover advantagein development of producer services，forming the unbalanced pattern. Although regionalindustrial agglomeration level declined in some years，it rises on the whole，and the problemof unbalanced state is still outstanding.（3）The econometric analysis based on panel data shows that producer servicessignificantly promote the industrial agglomeration. In the overall level，the producer servicesobviously promote industry agglomeration. In the concrete industry level，transportation,warehousing and postal service，wholesale and retail trade and the finance are promotingChina’s industrial agglomeration but the real estate.