The Impace Of Producer Services Andmanufacturing Co-agglomeration On Totalfactor Productivity

In the face of the downward pressure of economic development,Chinese government timely puts forward the development strategy that "focus on improving TFP" timely.It means Chinese economic development begans to enter the upgrading level.It is urgent to study the source of endogenous power of TFP development under this background.In this regard,this article tries to analyse from the perspective how industrial co-agglomeration acts on TFP growth.First of all,this paper makes a theoretical analysis on the internal mechanism that industrial co-agglomeration acts on TFP growth;Secondly,the paper inspects the specific path basing on classical panel model which uses the panel data of Chinese 246 prefecture-level and above city as the observation sample during 2003-2014;Thirdly,it takes a futher inspection to the threshold effects of industrial co-agglomeration on TFP growth by using panel threshold model,and an empirical analysis to the space effects by using spatial econometric mode finally.Through the theoretical analysis and empirical research above,the following conclusions can be reached:(1)The overall co-agglomeration degree of producer services and manufacturing industry is low in Chinese cities.Among more than 72 pairs of co-agglomeration E-G indexes during 2003-2014,only 14 pairs outnumber 0.02 and account for 19.44%,while the average annual relative co-agglomeration index is only about 0.7.(2)the TFP growth in China is due to pure technical progress and pure efficiency improvement mainly.According to the global DEA-Malmquist index,during 2002-2014 annual average TFP growthrate of Chinese cities is about 0.65%,and the cumulative growth rate is about7.4%;In the three decomposition index,the cumulative growth rate of puretechnical progress is about 23%,and this rate of pure efficiency improvement is about 8%,while the rate of scale change reduces about 15%.(3)The impacts of industrial co-agglomeration on TFP exists nonlinear difference in Chinese cities.First,with the promotion of specialized agglomeration degree of component industries,the tendency that producer services and manufacturing industry co-agglomeration acts on TFP growth to be from negative to positive,which means that the component industries specialized agglomeration degree more higher,the industrial co-agglomeration is more conducive to TFP growth,andvice versa;Secondly,along with the promotion of specialized agglomeration degree of component industries,the impacts of producer services and manufacturing industry co-agglomeration on efficiency improvement is apt to from negative to positive,but the impacts on technological progress tend to turn from positive to negative;Finally,industrial co-agglomeration in eastern region promote TFP growth at the foundation of driving efficiency improvement;and industrial co-agglomeration in central region restrain the TFP growth because they doesn’t work well for efficiency improvement,while the influence of industrial co-agglomeration to TFP growth is uncertain in western region.(4)There are threshold effects of China’s urban industrial co-agglomeration on TFP.When the manufacturing location entropy index is used as the threshold variable,after crossing threshold value(0.9851),the effect of industrial co-agglomeration on TFP growth is from negative to positive,besides,the positive impact originates the efficieney improvement and technological progress.When the percapita GDP is used as the threshold variable,the inhibition of industrial co-agglomeration on TFP growth is significantly reduced after crossing athreshold value of 271,520 million yuan(fixed price of 2000);and the impact on technological progress turns positive to negative while strides across the threshold of 608,280 million yuan.When the foreign direct investment is used as the threshold variable,industrial co-agglomeration has a greater role in promoting technological progress,but it has a greater inhibitory effect on production scale while the proportion of FDI accounts for GDP over thethreshold value of 0.057.With the city scale is used as the threshold variable,when the city population size over 2,25 million,industrial co-agglomeration is not conducive to technological progress;and when the size of urban population is less than 1,85 million it is not conducive to the expansion of production scale.(5)There are spatial effects of China’s urban agglomeration on TFP.Generally speaking,industrial co-agglomeration in different regions is not conducive to the improvement of local efficiency and scale expansion,but is conducive to local technological progress.From the time differences,positive spillover effect of industrial co-agglomeration in remote city to technological progress promotes local TFP growth during the period of 2003-2006;and negative spillover effect of industrial co-agglomeration in remote city to scale change leading to the negative growth of TFP during the period of 2010-2014 years.From the regional differences,the technology spillover caused by industrial co-agglomeration promotes the TFP growth of local cities in eastern remote cities,while the pressure to scale expansion caused by industrial co-agglomeration restrains the TFP growth of local cities in western remote cities.Based on the above conclusions,this paper argues that it is not suitable to promote the "two wheel driving strategy" of manufacturing industry and the service industry saucily under the existing conditions.If wants to push it the following measures should be adopted:First,spatial form of the city’s industrial co-agglomeration should be grasped fully;Secondly,it should determine the strategic objectives according to the law of industrial co-agglomeration;Thirdly,the positive effects of industrial co-agglomeration on TFP growth should be given full play;Finally,the negative effects of industrial co-agglomeration on TFP growth should be avoided and converted.