A Study On The Interactive Mechanism Between Producer Services And Urban Function

Affected by unfavorable factors at home and abroad, China’s economic slowdown, and urban problems continue to highlight. From the development trend of some major cities in the world, we can find that the urbanization is often accompanied by the rapid development of service industry, especially producer services. On the one hand, low pollution, low energy consumption, high added value and high industry linkage, etc. advantages make producer services have the ability to optimize the spatial structure of urban industrial, and then enhance the agglomeration and diffusion capacity of the city, improve the city’s ability to innovate and optimize the function of spatial structure; on the other hand, the city can provide a vast market, superior innovation environment, flexible system environment and improve the infrastructure, and then guide the location choice of producer services, agglomerate producer services and its supporting industries and provide support for the soft environment.However, by systematically combing the existing research literatures, this article finds that current studies on the Interactive mechanism of producer services and city functions focused on the contribution of producer services to the city and regional economy, or the location choice of producer services, but, the most important is the lack of empirical testing. This article tries to make a supplement to the above two points, so it has theoretical and practical significance.Taking the above analysis into account, this article will expand research in accordance with this idea of "summarize mechanism- put forward hypothesis – build model- empirical Test". First of all, this article will summarize the interaction mechanism of the production service industry and the urban functions, and then analyze the current situation of producer services and urban functions of the Yangtze River Delta city group; Secondly, this article will find out the other factors affecting the production service industry and the urban function by consulting the literature and propose hypotheses, and then determine the specific indicators of control variables; thirdly, determine the spatial weight matrix by software GeoDa and build static and dynamic panel data equations to study the short-term and long-term effects of producer services and urban functions; Finally, taking the Yangtze River Delta city group as the research object, the article empirically tests the interaction mechanism and put forward the corresponding policy recommendations according to the empirical results. The main conclusions of this paper are as follows:First, production service industry of the Yangtze River Delta city group developed rapidly in 2005-2013, the development level of regional productive service industry is relatively high. The urban function estimates through the industry has also improved, but the growth rate is slow. The specialized function is increasing, but the diversified function is declining, which shows that the Yangtze River Delta city group is still in the agglomeration stage of industrial and urban functions, and there is a big gap with the developed countries.Second, the results of the static and dynamic panel data equations show that there is a significant interaction between the producer service industry and the urban function. However, in the short term, the function of the city can promote the productive service industry, and the producer service industry has the negative effect on the urban function because of destructing of the original industry equilibrium and reducing of the city’s professional level; But in the long run, the urban function promotes the development of producer services, the latter has a significant role in promoting the former at the same time, both of which are collaborative development trend. So, in general, the productive service industry and the city function have a significant effect on each other. In addition, there is a significant negative spatial autocorrelation in the productive service industry, which indicates that producer services are still in the state of agglomeration. Urban function has no significant spatial autocorrelation.Third, in order to further investigate the role of urban function on the producer services, this article establishes the panel equation of the production service industry on the specialized and diversified urban functions. The results show that both of them have a significant effect on the producer services, and the effect of the specialized urban function is more obvious.This article takes the production service industry and the urban function as a whole on the perspective of system theory and studies the interrelation between them through simultaneous equations. This could make the result more convincing, and make up the deficiency of the empirical research in this field. This article makes a number of policy proposals according to the research conclusions, which have certain significance to solve the problems in the optimization of the industrial structure, the improvement of urban functions and the coordination development of industrial clusters and urban agglomeration.