Research Of The Impact Of Producer Services Agglomeration On Regional Economic Growth In Jiangsu Province

In recent years, in the face of the trend of global service economy and the demand of economic transition in China, the agglomeratelizatiion of producer services become one of the most important initiatives to adapt to the " new normal " economy during the three major trends. Some producer services agglomeration districts such as Huaqiao International Service Business Park, Jiangdong Software Park and Taizhou Medical Science and Innovation Park have become the new economic growth point in Jiangsu province. However, in contrast to the reality development, there is few of research on the relationship between producer services agglomeration and regional economic growth. This paper aim to explore the promoting path of regional economy through producer services agglomeration based on the research of Jiangsu province. And then, deficiencies have been found through empirical analysis in order to put forward some valuable suggestions which could improve producer services agglomeration.Firstly, this paper focus on the formation mechanism of producer services agglomeration and its effects on regional economic growth on the basis of literature review. Secondly, selects LQ index and other indexes to measure and analyze the agglomeration level in three areas. Thirdly, combines Marshaillian Externality, Jacobs externalities with NEG theory to built a Monopolistic Competition Model, and positively analyses the agglomeration’s impact on regional economic growth by using this two-sector model. The measure analysis of agglomeration level and the empirical results demonstrate that:the producer services agglomeration in Jiangsu province has got a rapid development but is still inadequate relative to the overall economic growth; the development of producer services agglomeration in Shanghai has siphon effect, which restrained the agglomeration of producer services in Jiangsu; the specialized agglomeration level of producer services in areas of Jiangsu province rising year on year, and has a significant positive effect on regional economic growth; the diversified agglomeration level ofproducer services in areas of Jiangsu province has trended down over the past ten years, and has a insignificant negative effect; the enlarged scale of producer services agglomeration in areas of Jiangsu province failed to promote the industrial revelant effect for regional economic growth, positive interaction between upstream and downstream industries has not been formed. Finally, according to the above conclusions and its reasons, and combined with the demand of development under "the new normal", this paper puts forward some policy recommendations.