Analysis On The Difference Of Productive Service Industry Efficiency From The Perspective Of Industrial Agglomeration

With the global economy transferring from the industrial economy to service economy, the producer services develop so fast, that is becoming the main driver of the economy and the point of industrial competition. It is of strategic significance to our economy. For the past few years, our producer services are developing fast, and taking on clear characteristic of industrial agglomeration. But its development is still relatively lagged. The primary industrial increasing model of depending on expanding production factors, not only brings big resource and environment pressure, but also faces some problems, such as the advantage of the labor cost is relatively decreasing in the producer services, the unreasonable industry structure with big differences between regions and so on. It is unsustainable. Thus, it is an important way to break through difficulties of industry development, as well as the inevitable choice to deeply urge our economic structure and growth pattern to transform by studying and solving the efficiency of producer services, and finding the measures to promote its development through improving efficiency.This paper focuses on the producer services in China, studies the efficiency and its differences in our producer services from the perspective of industrial agglomeration. The research ideas are "raising a question →analyzing based on some theories → empirical analysis by some models→proposals to solving problems". Based on some relevant theories of producer services, industrial agglomeration and the practical features of our producer services, this paper reveals the influence of industrial agglomeration to the efficiency and its differences of producer services in China, and builds up mathematical models to describe the influence of industrial agglomeration to the efficiency in producer services, which are the theoretical basis of the paper. Based on the provincial panel data during 2004～2012 of producer services in China, This paper uses methods of concentration ratio index, location quotient index, Herfindahl-Hirshman index and Malmquist productivity index based on DEA to measure the agglomeration level, total factor productivity and technological change, technical efficiency change,pure technical efficiency change and scale efficiency change of producer services in China.This paper analyses differences and its convergence of the industrial agglomeration degree and total factor productivity among subsectors and provinces in our producer services by using the method of σ convergence and absolute β convergence. On this basis, this paper establishes panel data models to analyze the influences of specific agglomeration and diversified agglomeration to the total factor productivity and technological change, pure technical efficiency change and scale efficiency change of producer services in China. Then it analyzes the influences of industrial agglomeration to the total factor productivity and its differences of producer services in eastern and middle and western China. The result of empirical analysis is almost consistent with the theoretical analysis. The main findings are as follows:Firstly, the industrial agglomeration in our producer services develops fast, and shows an obvious phenomenon of industrial agglomeration. The whole and subsectors producer services are oligopolistic industry, but the agglomeration levels vary among producer services in different subsectors and provinces. The industrial agglomeration in lease and commercial service industry is relatively higher, and the industrial agglomeration in transportation, warehousing and the postal service are relatively lower. The producer services agglomeration of different provinces shows an "tiered" unbalanced distribution from the eastern to the western China. The total factor productivity of productive service industry in Jiangsu is the highest relatively, and its annual growth rate is 0.2%.The annual growth of total factor productivity of productive service industry in Hainan declines the most.Secondly, the average efficiency of the total producer services and its subsectors are not high, and show the same downward trend. Efficiency of technological progress has a great influence to the total factor productivity of productive service industry. The differences among the total factor productivity of productive service industries in subsectors and provinces are apparent. The total factor productivity of the financial industry is the highest relatively, and its annual growth rate is 2.4%. The total factor productivity of the real estate sector is the lowest relatively, and it decreases 11.4% annually.Thirdly, the result of analyzing on the trend of efficiency differences in producer services announces that, there is a more significant convergence and absolute β convergence our producer services industry. The efficiency differences between different subsectors and the eastern, middle, western regions of our producer services are also reduced, which shows obvious absolute beta convergence.Finally, industrial agglomeration can be used to explain differences of the total factor productivity among subdivision industries and regions of producer services in China. Diversified agglomeration is the main impetus to improve the efficiency of producer services in China, which plays a significant role in promoting the total factor productivity, technology advancement efficiency and pure technical efficiency of producer services in China. The specific agglomeration has different impact on the efficiency of producer services in China, which has a significant positive impact on the pure technical efficiency of producer services in China. The positive effects of industrial agglomeration to the total factor productivity and its decomposing efficiency of China’s producer services come more from the diversified agglomeration. In terms of different areas, the promoting effect of the diversified agglomeration is remarkable to the total factor productivity of producer services in the whole country, eastern and middle regions. The diversified agglomeration and specific agglomeration contribute to the increase of the total factor productivity of producer services in western areas significantly.