A Study On The Relationship Between Agglomeration Of Producer Services And Technological Progress

With the rapid development of China’s economy, the industrial agglomerationphenomenon has been more and more obvious in our country. Meanwhile theproducer service industry on the contribution to GDP is also increasing. The producerservice industry and agglomeration have played a certain role on China’s economicgrowth and upgrading of industiral structure. In addition, technological progress as animportant factor of economic growth and upgrading of industrial structure deservesmore attention. However, compared with developed countries, China’s industrialdevelopment and technological level is not enough, even in some areas where gapshave been gradually expanding. So far, both domestic and international studies haveshown that there is a link between industrial agglomeration and technological progress.So dose that link exist between the producer service industry agglomeration which ischaracterized by knowledge-intensive and technology-intensive and technologicalprogress？ Based on this, this paper will try to explore the relationship between thetwo from both the normative and empirical respects, hoping to provide sometheoretical guidance and practical guidance.Based on the theory of industrial agglomeration, technological progress and therelevant papers on the theory, this paper first calculates geographical spatial Ginicoefficient and location entropy index of the country producer Service industry and itssix sub-sectors to reflect the current situation of the development of productiveservice industry, and then analyzes the present status of technological progress fromthe total factor productivity, and finally uses the calculating results to test thecorrelation between industrial agglomeration and the level of technological progressthrough Granger causality test.On base of the calculation of the index of producer service industry, it shows thatthe producer services, especially in the developed eastern coastal city agglomeration ahigher degree than central and western relatively insignificant. Through thecalculation of total factor productivity of different years and different regions, itshows that the total factor productivity of producer services is slowly increasing, but not stable, sometimes fluctuating，and the TFP growth rate of western region is fasterthan the eastern and central. Empirical analysis concludes that there is an obviousrelationship between the two-way interaction or productive service industry and itstechnological progress in China. Industrial agglomeration is both short-term causes oftechnological progress, but also the long-term causes of technological progress; Buttechnological advances only in the long-term performance of industrial agglomerationreasons, is not significant in the short term. The main measures are: First，thegovernment should take different stages of the development of industrialagglomeration appropriate policy measures to further deepen the industrialagglomeration and improve the efficiency of industrial agglomeration，whilepromoting the advancement of technology, and thus speeding up the process ofupgrading the industrial structure; Second is to increase investment in scientificresearch, and further improve the integration of external mechanism of production andresearch, and finally enhance the competitiveness of the industrial agglomeration area.