The Interactive Mechanism Between Producer Services Agglomeration And Manufacturing Growth In China

With the rapid growth of industry and optimization and upgrading of industrial structure,industry convergence is the main characteristic of industry in China currently.The relationship of producer services agglomeration and growth of manufacturing industry is more and more closely.In order to study the interaction mechanism between them,this paper uses an endogenous variable FDI and builds a spatial simultaneous equation model with producer services agglomeration,growth of manufacture and FDI by taking urban data of 283 cities in China during 2003-2013 as sample,so that we can provide suggestion and guidance for adjustment of industrial agglomeration policy.Firstly,this paper bases on the industrial agglomeration theory,central place theory,eclectic theory of international production and makes a statistical analysis on the present situation of producer services agglomeration and manufacturing growth from the aspects of industry development level,industry structure and spatial distribution.Secondly,this study reveals the direct and indirect interaction mechanism between producer service industry and manufacturing industry growth through using output density theory model.Thirdly,combining theoretical model and spatial auto-correlation analysis,the research builds spatial simultaneous equation model composed of producer service industry,manufacturing growth and FDI to test the existence of interaction mechanism and difference impacted by urban hierarchy.The conclusions are as follows:(1)There is an interactive relationship between producer services agglomeration and manufacturing growth,meanwhile,FDI strengthens the role of producer services agglomeration in promoting manufacturing growth.(2)With the increase of the degree of producer services agglomeration,the more developed local cities’ manufacturing are,the more developing resources they can seize from neighboring cities.(3)Comparing different hierarchical cities,the producer services agglomeration of non-central cities has a stronger attraction to FDI.The inflow of FDI has not shown a positive role in promoting producer services agglomeration in centralcities.Finally,according to the research results,the paper summarizes the interactive relationship between producer service industry and manufacturing industry growth and give some suggestions.