Research About Correlation Service Industry Agglomeration And Economic Growth

The problem of Economic Growth has been fully proved by the economicscholar, nowadays, the research about what is the force of economic growth mainlybased on the classic economic view, that is factor inputs, for example, capital、workforce、land、entrepreneurial ability、technology, etc.As we all know, with the rise of New Economic Geography, the research ofrelationship between industry agglomeration and economic growth has been valuedby the field of economic research. At the same time, as the important part ofNational Economy,the growth of service industry also attract much attention from thetheoretical cycle and policy maker. But unfortunately, the research of quantitativerelationship between service industry agglomeration and economic growth is in thevacuum state.This article is based on this perspective, trying to clarify the numericalrelationship between services industrial agglomeration and economic growth.First of all, on the basis of predecessors’ research results, and did a simple reviewof existing research results about the current research situation of service industry inour country, the source of economic growth, service industries agglomeration, etc.And find the flaws of the previous studies, which in turn determines the breakthroughpoint of this article, namely the quantitative analysis relationship between serviceindustries agglomeration and economic growth in China.Secondly, researched the correlation analysis of industrial agglomeration theory,mainly around the agglomeration concept, the reasons for the formation of regionalindustry agglomeration, the agglomeration index calculation, etc., it especiallyanalyses the reasons of the service, and according to the characteristics of the serviceindustry, using the service industry panel data in China from2003to2010, using thelatest measuring agglomeration index of the third generation technology-parameterestimation method, with the aid of Cobb-Douglas production function test, putsforward a new tentative calculation index–TH, in order to value of the agglomerationeffect.Again, the relationship between the service industry agglomeration andeconomic growth in China has carried on the theoretical analysis, mainly focus on theexplanation mechanism on the service industries agglomeration and economic growth.Then, carried on the empirical test of the existing characteristics in our country service industry agglomeration and economic growth. At the same time, based on"Williamson hypothesis", by constructing econometric models, for the first timeproved the quantitative relationship between industrial agglomeration and economicgrowth, the results show that the linear relationship between present a significantnonlinear characteristics.In the end, the research conclusions are following:(1) at present, with the viewof our country service industry cluster, according to the classification standard ofGB/T4754-2002, in the subdivision industry of service industry in our country, thefirst eight industry have obvious accumulation effect, by contrast, the later six majorindustry have weak agglomeration effect, especially,individual industry doesn’t evenhave a agglomeration effect;(2) in our country, the relationship of service industryagglomeration and economic growth is proved to be a linear relationship andpresented the inverted u-shaped structure, this finding gives a well-reasoned anda strong support of "Williamson hypothesis". And gives the corresponding policyrecommendations.