Research On Co-agglomeration Level Of China Producer Services And Manufacturing Industry And It's Influence Factors

Nowadays, China's economy is experencing a critical period which calls for adjust and optimize the current industrial structure as well as accelerate the transformation of economic growth model. The “Two Wheel Drive” strategy which calls for pushing the industrial cluster development and promote the service & developed manufacturing industry become our inevitable choice. Therefore, the coagglomeration of producer service industry and manufacturing industry will be a normal trend of China's economic development in the future. However, there is little research on the synergy between the producer service industry and manufacturing industry. Still, there are several questions worth us to explore: What is the current synergy degree between the urban producer service and manufacturing industry in China? What are the economic factors which affect the synergy development of producer service and manufacturing industry? What is the relationship between the location choice of producer service industry and the synergy degree between producer service industry and the manufacturing industry?To answer these questions, this paper first reviews the literature on the co-agglomeration of producer service and manufacturing industry, and summarize the present research situation. Secondly, based on the new economic geography vertical correlation model, this paper analyze the agglomeration of producer service industry and the manufacturing industry and establish the theoretical framework of the synergy between producer service industry and manufacturing industry. Thirdly, based on the data of 268 level cities in China during 2006-2013,this paper construct the industrial cooperative clustering index to measure the synergy between the producer service industry and the manufacturing industry and the test the factors which affect the industrial cooperative clustering index. The empirical results show that:(1) There exists co-agglomeration in urban producer service and manufacturing industry in China. The average value of the concentration index of producer services and manufacturing industry in the eastern part of the city is higher than that in central and western cities.(2) In different regions, The influence factors, effect which affect the producer services and manufacturing synergy are different: the agglomeration of manufacturing industry act as an obstacle to the synergy of the eastern city, while it has a significant positive effect on the coordination of the central and western cities.(3) There are differences in the effects of the producer service industry and the manufacturing industry. The agglomeration of the Wholesale and retail trade industry, the financial industry, leasing and business service industry lay a positive affect on the agglomeration of producer services, however the agglomeration of information service industry and real estate industry are not conducive to the synergy agglomeration of producer services and manufacturing industries. Finally, based on the theoretical analysis and empirical research, this paper puts forward policy recommendations to promote the development of China's producer service and manufacturing industry.