The Impact Of Producer Services Agglomeration On The Manufacturing Industry

China is currently experiencing a critical period for adjustment of industrial structure. To augment the coordination and interaction of producer services and manufacturing industry, promote China's manufacturing industry for transformation and upgrading, change the growth pattern of it by producer services, have been a live option for the adjustment of industrial structure at present. At the meanwhile, China's producer services show a non-equilibrium development trend in space, and most of them cluster in the eastern developed cities. It develops slowly in central and western regions and also small cities, clustering and spatial non-equilibrium trend of producer services are more obvious than manufacturing industry. So, does this kind of clustering trend of producer services have positive influence on the manufacturing industry? Does it exist threshold effect if it has positive influence? If it has spatial heterogeneity based on the threshold effect? Based on these questions, our study tries to analyze the impact of producer services on the manufacturing industry from spatial heterogeneity.Our research combines the theory and empirical study. Firstly, we measure the agglomeration degree of producer services of nationwide and eastern, central and western regions, then use threshold regression model to regress the impact of producer services on manufacturing industry. Based on the results, we analyze the nonlinearity relation and heterogeneity threshold feature between producer services and manufacturing industry. We get the following conclusions:(1)Producer services have a positive influence on the manufacturing industry, and they show a nonlinearity relation.(2)In the dimension of nationwide, the threshold values of producer services to manufacturing industry are 1.035, 1.168 and 1.906 respectively, depending on the four threshold section divided by threshold values, there are different impact on the producer services to manufacturing industry. The influence of producer services on the manufacturing industry show a “~” nonlinearity relation.(3) The influence of producer services on the manufacturing industry in eastern regions has two threshold values 0.97 and 1.082 and three effect sections, The influence of producer services on the manufacturing industry show a “V” nonlinearity relation.(4) The influence of producer services on the manufacturing industry in central regions only has one threshold value and one effect section, only when the agglomeration degree of producer services is bigger than 0.99, could producer services have obvious influence on the manufacturing industry.(5)Western regions have three threshold values 0.99, 1.016 and 1.068 and four effect sections, the influence of producer services on the manufacturing industry show a reverse “U” nonlinearity relation.Based on the results above, we have suggestions on promoting the manufacturing industry by producer services agglomeration: establish differentiated local industry development policy; coordinate the arrangement of service industry resource intra-region; optimize the investment environment of producer services; advance manufacture services.