Empirical Analysis On The Aggregation Of Urban Service Industry And Its Determinants Based On Quantile Regression Method

The spatial agglomeration of economic activity is a universal phenomenon. As thedevelopment pattern of the world economy from industrial economy to serviceeconomy, service industry and especially urban productive service industry isseparated from manufacturing industry through outsourcing form. The role of serviceagglomeration on economy is important gradually and the researcher pay more andmore attention to agglomeration phenomenon. So, the study on the influence factors ofurban service industry agglomeration is of very important significance.The articleconstructs a quantile regression model for panel data on the influence factors of urbanservice industry agglomeration based on China’s261cities data and hope that thearticle can reveal the inherent formation mechanism of urban service industryagglomeration.Empirical results show that:(1)scale economy have a significant role in promotingurban service industry agglomeration and have important beneficial effect onagglomeration level at lowest quantiles;(2)Transaction cost have a negative role inpromoting urban service industry agglomeration at various quantiles.The coefficientindicates that the negative role is gradually decrease as the time goes;(3)Populationdensity have a significant role in promoting urban service industry agglomeration. Thelevel of industrial development has different roles on urban service industryagglomeration at different quantiles. It has a beneficial effect on urban service industryagglomeration at the lowest quantiles,an adverse effect on urban service industryagglomeration at the highest quantiles.This suggest that a reduction of the level ofindustrial development can improvement the agglomeration level of cities that lie inthe lowest quantiles,while reducing the agglomeration level of cities that lie in thehighest quantiles.(4)System environment has the different effects on the urban serviceindustry agglomeration at different quantiles.Finally, the article proposes some suggestions on the improvement of urbanservice industry agglomeration,optimize the urban service industry structure andcoordinate development of regional economy according to the empirical results.