| Since the middle of the 20th century, the position of the service industry, especially the producer service, in the economic development of all countries is rising, as the added value and employment number of service industry the increase. And although in the initial period of development, manufacturing can expand the scale by increasing investment capacity, but when encounter the bottleneck of elements during development, they need to rely on the penetration effect of producer services to upgrad the industrial structure of manufacturing. Therefore, At the background that the study about the agglomerative economies which based on the new economic geography, the theories of industrial cluster, the social network theories and urban economics is arising, the research on the coordinative development between producer services and manufacturing becomes a new hot spot. Reviewing the current researches, there are three main problems as follows:(1) At the aspect of inner mechanism, there are three ways to accomplish the coordinated development between the producer service and the manufacturing which are outsourcing of producer services, servicesation of manufacturing and co-location. Compare to researches on the path of outsourcing of producer services, researches on the servicesation of manufacturing and co-location are relatively weak, especially on the spatial level of the coordinated development between the producer service and the manufacturing. Although there are a lot of literatures to explore the location selection problem in producer services, and the conclusion are different from the manufacturing, but there are few scholars consider this problem together. (2) At the aspect of performance evaluation, the existing researches are almost based on input-output table which only considered the industry level, ignored the coordinate space factor. On the other hand, the investment of the domestic input-output table in on the provincial level, so the evaluation of the coordination effect at the industrial level also only stay in the provincial level, while the producer service industry can only coordinate with manufacturing between cities, those kinds of evaluation are the lack of significance. (3) At the aspect of research method, the interation relationship between producer service and manufacturing, are at the same time, on both industrial level and spatial level, so the previous research using single equation to explain the relationship remain to be discussed.The paper brings forward that main study point on the spatial coordication between producer services and manufacturing on the precondition of the same openness and development. Through describing micromechanics caused by the vertical linkage between two industrial locations, it identifies that the transaction cost plays an important role in the spatial coordination of producer services and manufacturing. At the same time, through representing the distribution status of the producer service and manufacturing in the Yangtze river delta, it confirms that the urban scale also has an influence on the spatial coordination. Furthermore, the paper uses simultaneous equations to confirm the co-loction effect between producer service and manufacturing and the effect of transaction cost and urban sclase. On this basis, this paper narrow down the aspect down to a single city, using the enterprise data of producer service and manufacturing in Hangzhou as sample, tests the enterprise size's effect on the spatial coordination between producer service and manufacturing. Finally, this paper applys the Moran I index and M function, to calculate the coordination level on both spatial dimensions of metropolis circle and single city. Through the theory and empirical analysis, this paper discusses draw the following conclusions:(1) There are spatial coordination between producer services and manufacturing existing on both spatial dimensions of metropolis circle and single city, but the influence of manufacturing location on the producer services is less than the opposite impact. (2) At different spatial dimensions, there are multiple factors that affect the spatial coordination between producer services and manufacturing. First of all, at the dimension of metropolis circle, the coordination is effected by the urban scale and transaction costs. Second, at the dimension of single city, the spatial division of labor force influence the coordination through the enterprise size. (3) Through the analysis, the paper is able to explain the phenomenon of the agglomeration of producer service and the diffusion of manufacturing to a certain extent:First of all, the lower the transaction cost, the more agglomeration the industry will be. And at the current domestic transportation level are more developed than the communication level, it is difficult to reduce the transaction cost of manufacturing, and is relatively easy to reduce the transaction cost of producer services. Second, producer services have a higher output per square than the manufacturing, thus it has higher capacity to stand the factor cost in city center. (4) There are differences among the agglomeration characteristics of producer service's subdivision industry, which lead to the possibility of coordination between producer service and manufacturing in a single city exists. In the range of a city, the complementary coordination and extrusion coordination both exist.Of course, limited by the academic level of the author, there are still many defects. Thus, at the last part of the paper, it put forward the limitations of this study and some problems that still needs to be done in the future. |