The Impact Of Specialization And Diversification Of Service Industry Agglomeration On Economic Growth

Global economy led by industry are transforming to services oriented now,the development of service industry has become an important index to evaluate the level of modernization and the comprehensive competitiveness for countries and regions.At the same time,huge competitive advantage have been brought to countries and regions due to the highly service industry agglomeration.Service industry agglomeration shows an excellent trend in our country.It has become cities' new "growth-pole" along with its scale is still growing.Now economy in our country has entered era of "new normal state" and how to accelerate the growth of service industry has become the key point for adjusting economic structure and transforming the economic development mode for our country.How can we take advantage of the highly service industry agglomeration and how to avoid investing blindly have become an important issue that we cannot ignore.But there is less to distinguish the advantage of the service industry agglomeration is derived from specialization agglomeration or diversification,according to latest research.Based on this,this thesis will analyze the specialization and diversification of service industry agglomeration comparatively to see if they will affect the economic growth for a region.And providing valuable suggestions for the service industry in our country.First of all,the mechanism of the specialization and diversification of service industry agglomeration to promote economic growth according to the existing relevant literatures was analyzed,as the theoretical basis of empirical research below;secondly,the paper used the specialized service agglomeration index and the diversified agglomeration index to measure the level of specialization and diversification of service industry agglomeration in the Yangtze River Delta,and analyzed the results;then,an empirical model was constructed,using generalized least square method(GLS),to analyze the impact of specialization and diversification of service industry agglomeration on economic growth in the Yangtze River Delta region from 2005 to 2014;furthermore,the cities in the Yangtze River Delta were classified according to the scale of cities,and the differences between the impact from specialization and diversification of service industry agglomeration on economic growth were analyzed;finally,according to the research conclusion,this study put forward the countermeasures and suggestions on giving full play to the advantages of service industry agglomeration.The results show that the service industry agglomeration of the Yangtze River Delta in our country can promote regional economic growth significantly,in which the promotion effect comes from the diversification of service industry agglomeration rather than the specialization of service industry agglomeration.The diversification agglomeration of service industry is an important factor of economic growth in the Yangtze River Delta region,and its effect on economic growth is more prominent in big cities;at the same time,specialization agglomeration of service industry will have a negative effect on economic growth,and the negative effect of small and medium cities on economic growth will be even greater.It indicates that the specialization agglomeration of service industry in Yangtze River Delta may appear "congestion effect",while the diversification agglomeration of service industry brings the knowledge and technology spillovers,which are more conducive to innovation and upgrading,so as to stimulate the regional economic growth.In addition,labor input and capital investment also play a significant role in promoting economic growth.