The Impact Of The Agglomeration Of Producer Service Industry On Total Factor Productivity

China’s economy has entered a new normal of pursuing high-quality development,while the traditional extensive development model can no longer meet the needs of modern economic development.The report of the Party’s 20 th National Congress calls for efforts to improve total factor productivity,build a new pattern of economic development,and achieve high-quality economic development.Producer service industry is a new industry that provides supporting services for manufacturing industry.It has the characteristics of knowledge intensive,agglomeration distribution and industrial correlation.In recent years,with the development of information technologies such as the Internet and the Internet of Things,the cost of information transmission has been effectively reduced,and the service scope of enterprises has been expanded,with the trend of spatial agglomeration of producer services.Accelerating its development will help strengthen the quality and resilience of the industrial chain and supply chain,promote the optimization and upgrading of traditional manufacturing,foster advanced manufacturing and high-tech industries,and achieve high-quality economic development.Based on this,this paper deeply analyzes the influence of producer services agglomeration on total factor productivity.Based on the review of the relevant literature on producer services agglomeration and total factor productivity,this paper,guided by industrial agglomeration theory and economic growth theory,constructs the influence mechanism of producer services agglomeration on total factor productivity.The agglomeration level of producer services in284 cities in China from 2003 to 2019 was measured by location quotient index,and the current situation of producer services agglomeration was analyzed from the perspective of whole,industry and space.The Malmquist index and its decomposition are measured by DEAP software.By constructing a two-way fixed effect model,this paper empirically tested the influence of producer services agglomeration on total factor productivity from the perspective of industrial agglomeration and externality,as well as the heterogeneity test of regional,city size and administrative level,and further explored the threshold effect of producer services agglomeration on total factor productivity under different constraints.The main research conclusions of this paper are as follows: First,the scale of productive service industry continues to expand,the internal structure is constantly advanced,and the agglomeration level of productive service industry fluctuates and declines.Second,there is a crowding effect in the agglomeration of productive service industries,which has an inverted "U" relationship with total factor productivity,and there is an inverted "U" relationship in the eastern and western regions,high-and low-level cities and medium-sized cities and above,while the central and small and medium-sized cities are not significant.Thirdly,MAR externality and total factor productivity have inverted U-shaped relationship,Jacobs externality and Porter externality are positively correlated with total factor productivity,but not significant in the central region.Jacobs externality only has a positive correlation with type II city,Porter externality only has a positive correlation with small city,MAR externality of high and low administrative level cities has an inverted "U" shaped relationship.The Porter externalities and Jacobs externalities of low administrative level cities have promoting effects,but high administrative level cities are not significant.Fourthly,when the level of information development and the level of economic development are the threshold variables,the agglomeration of producer services has a double threshold on the total factor productivity,and the relationship between inhibition,promotion and further promotion appears.When government intervention is taken as the threshold variable,there is also a double threshold,there is a inhibitor-insignificant-promotion relationship.When foreign direct investment is taken as the threshold variable,producer services agglomeration also has a double threshold on total factor productivity,showing a promotion-insignificant-inhibition relationship.Based on the above conclusions,the following policy recommendations are put forward:(1)to guide reasonable and appropriate industrial agglomeration;(2)Select reasonable industrial agglomeration mode according to local conditions;(3)Comprehensively and continuously promote the construction of urban informatization;4)Raise the threshold and efficiency of foreign investment.