The Influence Of Spatial Agglomeration Of Producer Services On The Efficiency Of Manufacturing Industry

The particularity of producer services in production and consumption causes an even stronger trend of spatial agglomeration in producer services than in manufacturing.And this kind of spatial agglomeration will produce positive effect to promote efficiency of producer services and greatly improve manufacturing efficiency at the same time. Based on the theory of Classical Economics of Professional Division of Labor, Schumpeter Innovation Theory, Contemporary System Economics, New Economic Geography, Super Property Right Theory, Spatial Econometrics and other interdisciplinary theory, I use a combination of theoretical analysis and empirical analysis to discuss mechanism of producer services agglomeration affects manufacturing efficiency and why can producer services agglomeration affects the manufacturing efficiency.First of all, according to the research status at home and abroad, I review the literature about the mechanism of the spatial agglomeration of producer services and relationship between the producer services and manufacturing. And then analyzes the way and the intrinsic mechanism of spatial agglomeration of producer services improve manufacturing efficiency from the angles of vertical and horizontal cluster agglomeration. The paper confirms the producer service enterprises cluster to share learning effects, competition effects, horizontal cooperation effects and human resource reservoir effects to improve the efficiency itself, and also reduces the manufacturing costs to improve the efficiency indirectly. Vertical agglomeration of productive service has vertical division effects, vertical cooperation effects and network effects which will directly improve the efficiency of manufacturing.Then, on the basis of theoretical analysis and using spatial econometric analysis method, I discuss the effects which producer services agglomeration has exerted on manufacturing production efficiency of the 259 Chinese cities from 2005 to 2011. Spatial spillover coefficient reaches a high value and passes the significance test. It fully proves that producer services agglomeration can not only drive the city manufacturing efficiency, but also drive the surrounding city manufacturing efficiency.Finally, I put forward some policy suggestions. I suggest the government should deepen the reform of the producer services and encourage the development of producer services, encourage manufacturing productive service outsourcing, improve the service outsourcing environment, optimize the industrial layout, and strengthen the spatial agglomeration of producer services.