A Study On Agglomeration Features And Efficiency Of Producer Services In The Yangtze River Delta

In recent years the productive service industry has became one of the fastestgrowth economy industries in the world. It plays an important role in national economy.As the fastest developing area in contemporary China, Yangtze River Delta is in acritical period of industrialization turning to post industrial. The rapid development ofthe productive service is one of the most important features and the productive serviceof Yangtze River Delta has formed a certain scale of agglomeration. The degree ofagglomeration is an important index carrying on the analysis judgment to thedevelopment level of producer service industry, and agglomeration efficiencyimprovement is the goal of productive service industry. At the same time the productiveservice industry agglomeration in the Yangtze River Delta whether will increase theindustry’s efficiency. It is a core problem in the research of productive service industrydevelopment in the Yangtze River Delta city. Based on this, this paper combined withdevelopment status and agglomeration features of productive service industry in theYangtze River Delta, effectively evaluates comprehensive efficiency of productiveservice industry agglomeration and puts forward improvement suggestions.Firstly, based on the overall aspects of the productive service industry, separatelyusing the added value and employment to analyze the development situation of theproductive service industry in the Yangtze River Delta of in recent years. Productiveservice industry development status in Shanghai, Jiangsu and Zhejiang carrying on ahorizontal and vertical comparative analysis. Research shows that the development ofproducer service industry in Yangtze River Delta increases rapidly. The proportion andthe total amount of added value and employment improve greatly. The added value ofindustries also improves a lot, especially the financial industry.But the scientificresearch, technical service and geological prospecting industry development is relativelylow. From the regional differences of view, the development of productive serviceindustry in Shanghai is the best, while Jiangsu and Zhejiang still have a certain gapcompared with Shanghai.Secondly, the urban primacy index, the improved spatial Gini coefficient andlocation quotient are the three indexes which have a statistical measure metrics focus,complementary each other.They calculate the agglomeration status of the whole and subaspects of the productive service industry in different periods and different cities. According to the analysis result, the development agglomeration of the productiveservice industry in the Yangtze River Delta is high. The degree of agglomerationincreased. The three indexes in Shanghai were in a leading position,so shanghai isworthy of the name of the productive service center of the Yangtze River Delta. Nanjingand Hangzhou showed a certain extent level of the agglomeration.There are some citieswith its comparative advantages forming the agglomeration of some industries, such asZhoushan and Xuzhou whose transportation storage and postal industry showed asignificant concentration.Thirdly, this paper use the BCC model in data envelopment analysis (DEA) toevaluate And find out that agglomeration efficiency of producer services in YangtzeRiver Delta were in a state of DEA effective from2005-2011. On the basis of this,thispaper analyzes differences in the levels of producer services agglomeration efficiencybetween Shanghai, Jiangsu and Zhejiang, combining with the location quotient. Futhermore, this paper analyzes the reasons of difference. Research shows that Shanghai’sproducer services agglomeration efficiency is valid for three consecutive years andother parts of the Yangtze River Delta should learn from its good experience. Nearlytwo years in Jiangsu’s producer services cluster was in DEA effective state, but theconcentration degree was relatively low, which has not formed the scale economy.Although agglomeration degree of Zhejiang was higher, the agglomeration efficiencywas poor.The lack of comprehensive technical efficiency was caused by both invalidscale efficiency and pure technical efficiency. As a result, Zhejiang province at the sametime, should pay more attention to improving the efficiency of resource used andreducing the efficiency loss in the process of agglomeration.Finally, this paper makes a brief summary of the main research conclusions and thedeficiency. Combining with the realistic background of producer services agglomerationlevel and agglomeration efficiency in Yangtze River Delta, some correspondingpolitical implications are concluded, which will help Yangtze River Delta gain rationalallocation of resources and improve efficiency of producer services agglomeration. As aresult, the healthy development of producer services will provide an empirical basis andsome references for the Yangtze River Delta on the way to becoming an importantglobal modern service center.