Analysis Of The Influence Mechanism Of Producer Service Agglomeration On Manufacturing Development

High-quality manufacturing is the key to improving international competitiveness and export value in China.With increasing social division in production,global manufacturing is showing the trend of outsourcing non-core production processes to focus on product core competitiveness.It was proposed for the first time to vigorously develop producer-oriented services in China’s "Eleventh Five-Year Plan".Producer services have gradually become a new growth engine for the manufacturing productivity,innovation,upgrading and international competitiveness.Compared with consumer and public services,producer services,as a technology and knowledge-intensive intermediate product service industry,show a higher degree of agglomeration.The strategic choice of producer service specialized and diversified agglomeration determines the interregional mobility of social capital and labor,regional competition and monopoly,as well as the formulation and implementation of corresponding government policies on talent,financing and industry.In recent years,a growing body of studies has found the inverted U-shaped impact of industrial agglomeration on China’s economy.The non-linear impact of industrial agglomeration on economic growth has been initially revealed in China.In addition,there are regional constraints in the process of producer service agglomeration influencing manufacturing development.These constraints may lead to failed local government’s planning for producer service agglomeration and manufacturing.In order to conduct a more accurate systematic study of producer service agglomeration and manufacturing development in China,a monopolistic competition model introducing intermediate product specialized agglomeration,diversified agglomeration,factor liquidity and city size based on the Dixit-Stiglitz model in new economic geography is constructed.In the theoretical analysis,the following questions are discussed:the strategic choice of China’s producer service agglomeration mode;the effect results of producer service specialized and diversified agglomeration on manufacturing under the framework of intermediate and final products;the mechanisms of congestion effects of producer service agglomeration on manufacturing development and their relationships;the external factors restricting the process of producer service agglomeration affecting manufacturing development.In the empirical study,measurement methods of producer service specialized agglomeration,diversified agglomeration and factor liquidity are improved according to China’s facts,and the empirical examinations on microscopic panel data of listed manufacturing enterprises in China from 2003 to 2019 are conducted.It is found that producer service specialized and diversified agglomeration in China generally promoted manufacturing development from 2003 to 2019,but producer service specialized agglomeration appeared unfavorable to manufacturing development when insufficient agglomeration or over-agglomeration occurred.It indicates that the adverse influence of producer service specialization agglomeration on manufacturing development in the early stage caused by competitive development in China is severe,and the over-agglomeration of producer service specialized agglomeration is already not conducive to manufacturing development through the production chain.There exist problems such as innovation mechanism,monopoly structure,excessive competition,crowding-out effect,lack of market potential and regional factor scarcity in areas with agglomeration diseconomies.In addition,factor liquidity and city size have moderating effects in this process,which are two external constraints that local governments have to pay attention to in producer service agglomeration.