The Influences Of The Agglomeration Of Producer Services On The Urban Productivity

The Producer Services, which have features of knowledge-intensive and high value-added,have developing rapidly in recent years. They play a outstanding role in terms of increasing employment, encouraging innovations, and promoting economic development. So, we chose to do a research on agglomeration degree and agglomeration effects of Producer Services and its sub-sectors.From the perspective of industry heterogeneity, A theoretical and empirical research has made on the effects of agglomeration of producer services and its six sub-sectors on urban productivity. The theoretical research show that producer services agglomeration itself not only have direct effect on urban productivity, but also influence urban productivity through a indirect way by promoting the productivity of other industries which have input-output or technical relationship with producer services, and then facilitate the urban productivity. Different characteristics between each industry also determine their different functional mechanisms. The empirical research across 283 prefectural or higher level cities for the period of 2003-2012 in China show that there exist remarkable positive relationships between the agglomeration of producer services and urban productivity. but there exist some differences in empirical results between the six sub-sectors. It is closely related to the diversity of industry characteristics.Finally, Based on the results of this research, we made an conclusion and provided some measures and suggestions.