The Effect Of Co-agglomeration Between Manufacturing And Producer Services Industry On Labor Productivity Of Manufacturing Industry

In recent years,China's economy is in a critical period of transition from a high-speed growth stage to a medium high-speed growth stage.How to ensure the quality of economic development while maximizing the pursuit of growth has become a major problem that China must solve.In addition,the essence of “supply-side reform”is to put forward higher requirements for longterm labor productivity.There are great differences in labor productivity among the east,the middle and the west region of China.At the same time,the region shows the characteristics of industrial agglomeration and inter-industry co-agglomeration.Therefore,it is of great theoretical and practical significance to study the impact of co-agglomeration among industries on labor productivity of manufacturing industry.First of all,based on the data of China Statistical Yearbook 、China Industry Statistical Yearbook and WIND database during 2004-2017,this paper not only measures the overall agglomeration degree of manufacturing industry and productive service industry,but also the coagglomeration degree between them in 31 provincial administrative regions in China,and makes a horizontal and vertical comparative analysis to have a better understanding of their co-agglomeration.Then,based on the theoretical analysis about the mechanism of coagglomeration's impact on the labor productivity of manufacturing industry,this paper constructs the panel fixed effect econometric regression model and IV-GMM model,and empirically tests the impact of co-agglomeration between manufacturing industry and productive service industry on the labor productivity of manufacturing industry form the whole and different region aspect by extending the producing density model of Ciccone & Hall,as well as the threshold effect of productive service agglomeration.Finally,based on the conclusions of this paper,the corresponding policy recommendations are given.The conclusions are as follows:(1)the degree of agglomeration of manufacturing industry in China has been declining,and the degree of agglomeration of productive service industry has been rising.As a whole,the degree of co-agglomeration between manufacturing industry and productive service industry has a significant downward trend.The co-agglomeration of the two summarizes the path that productive services affect the labor productivity of manufacturing industry through informatization,its own industrial scale and level.(2)The empirical test shows that the influence of manufacturing industry on labor productivity is negative,and the co-agglomeration between manufacturing industry and productive service industry in the whole country has a significant role in promoting the labor productivity of manufacturing industry.(3)Finally,we find that productive services agglomeration has a non-linear effect on labor productivity,and there is a double threshold effect under the national sample.The threshold estimates are 0.589 and 0.847.When the agglomeration degree of productive service is less than 0.589,the estimated coefficient of coagglomeration variable is 0.162;when it is greater than 0.589 and less than 0.847,the estimated coefficient is 0.608;when it is greater than 0.847,the estimated coefficient is 1.122.There is also a single threshold effect in the eastern and western regions,corresponding to thresholds of 0.8469 and 0.0912,respectively.With the improvement of the agglomeration degree of producer services,the internal economies of scale can be transmitted to the manufacturing industry,the labor productivity enhancement effect of co-agglomeration will play a more full role,and the positive promotion effect of co-agglomeration on the labor productivity of manufacturing industry will increase.Based on the above conclusions,this paper holds that,first of all,we should accelerate the development of high-end manufacturing industry,develop core technology,improve the design level,and promote the manufacturing industry to rise to the high-end value chain.Second,we should improve the degree of co-agglomeration,implement differentiation policies in different regions,focus on improving the development level of productive service,and realize the target that the economic development is driven by modern service industry and advanced manufacturing industry.Third,we should build a collaborative functional platform for manufacturing and productive services,promote the flow of knowledge and technology across industries,and enhance the convenience of technology and capital factor transactions.Finally,we should increase investment in education and innovation,expand government expenditure,optimize expenditure structure,improve infrastructure and public services required for co-agglomeration,and improve the level of transportation.