The Influence Of Spatial Agglomeration Of Producer Services In Hunan Province On The Efficiency Of Manufacturing Industry

Since the 12th Five-Year Plan,producer services with high technology and strong linkages have been one of development priorities of Hunan Province.Because of the particularity of producer services in production and consumption,there is a stronger trend of spatial agglomeration in producer services than in manufacturing.And will this kind of agglomeration produce positive effects or negative effects to manufacturing efficiency?However,more and more studies have manifested that agglomeration of producer services will not only bring agglomeration effects to promote the manufacturing efficiency,but also cause congestion effects which will hinder its promotion.Based on the current researches at home and abroad,the mechanism of the agglomeration effects and the congestion effects has been studied by two angles of direct and indirect effects.The agglomeration of producer services will improve the efficiency of manufacturing directly by vertical division effects,cooperation effects in the same business and network effects,indirectly by learning effects,competition effects,cooperation effects up and down the value chain and human resource reservoir effects.On the other hand,It's possible that manufacturing efficiency will be reduces directly for insufficient preparation,monopoly of agglomeration and the decline of independent innovation,and indirectly for excessive competition,complex network and "free-riding" problem.And it is found that the effect of agglomeration of producer services on manufacturing efficiency(congestion effects mainly or agglomeration effects mainly)changes,when the stage of agglomeration development changes.Then,the horizontal "S" type relationship has been used for explaining the relationship between agglomeration of producer services and manufacturing efficiency.Taking 13 cities of Hunan Province as examples,the level of agglomeration of the producer services from 2005-2015 was measured,which shows that the coefficient-numbers are positive but small;the manufacturing efficiency is measured by the all-personnel labor productivity,it has increased slightly in recent years,but there still is a certain distance from the developed economy.Finally,with the all-personnel labor productivity and the coefficient about the agglomeration of the producer services,this paper used Spatial Econometric analysis method to discuss the effects about producer services agglomeration exerting on manufacturing efficiency,by using manufacturing Cluster,Human Resources,Research and Development and Government intervention as control variables.It's found that the agglomeration of producer services in Hunan Province has a significant negative effect on manufacturing efficiency which is still in the first stage of the "S"type relationship,mainly because the development of producer services is low-level,and the promotion of manufacturing hasn't fully played out.Then it has been verified that after the first stage when the congestion effects mainly,the agglomeration of producer services will turn to promote manufacturing efficiency.Therefore,this paper has put forward some policy suggestions about the follow-up development of producer services and manufacturing in Hunan Province.