Research On The Land Price On The Agglomeration Of Producer Services

With the international service industry continue to reduce barriers to entry,chiefly due to multi-national corporations, Superior service industry of the developed countries gradually shift to emerging nations, which make the industrial structure and layout of global economic adjust faster. Along with the rapid economic development,the proportion of services especially producer services output in the whole economic output enhance rapidly. The focus of industrial structure is shifting from industry to service, where the value added contribution of producer services for the growth of the service sector is the main reason. Producer services have appeared the phenomena of agglomeration in space. Based on the review of the research results, this paper analyze the Trends, formation mechanism and influencing factors of agglomeration of producer services using the basic theory of new economic geography.In this paper, we analyze the factors that are considered in the location choice of producer services enterprises. Through studying the effect of land price on producer services through related demand effects, This paper finds the inner mechanism of the influence of land price on the agglomeration of producer services. The empirical model of this paper includes a series of control variables that affect the urban industrial agglomeration: knowledge density, urbanization level, institutional factors and so on.Based on the trend of the development of producer services agglomeration in China, in this paper, we use the data of 100 key cities to carry on the empirical analysis. According to the assumption of nonlinear relationship between land prices and producer service industry, the empirical analysis is introduced to the two variables of land price. The empirical results show that both of them have a U shape relationship. Taking into account the economic development of different regions is not balanced, based on the national sample, this paper divides the sample into the sample of the eastern region and the central and western regions and carries on theanalysis. The study found that the impact of land price change on producer services agglomeration in the eastern region is more obvious than that in the central and Western regions. In the eastern region, the producer services industry is more dependent on its market demand, while the central and western region's producer services are more dependent on the local education level.Meanwhile, taking into account the different sectors under the classification of producer services have some differences, the 5 sectors of the producer services were analyzed. This paper found that scientific research, technical services and geological prospecting industry and the financial industry is not sensitive to land prices, leasing and business services are most sensitive to land prices. Finally, according to the empirical results, this paper puts forward the policy recommendations.