International Journal of Business Marketing and Management (IJBMM) Volume 5 Issue 4 April 2020, P.P. 15-23 ISSN: 2456-4559 www.ijbmm.com
The Impact of Producer Services Agglomeration on Total Factor Productivity ——Based on the perspective of the industry and regional differences Rui Chen 1
University of Chinese Academy of Social Sciences, Beijing, China
ABSTRACTďźšThis paper analyzes the impact of high-end and low-end productive service agglomeration on China's urban total factor productivity using panel data from 261 cities in China from 2003 to 2017, and divides the country into three parts: East, Middle, and West Research. The empirical results show that: First, the agglomeration of high-end producer services is conducive to improving urban TFP. In contrast, the agglomeration of low-end producer services has no significant impact on urban TFP. Second, in the East, the agglomeration of high-end and low-end producer services has a positive impact on urban TFP. In the middle of China, the agglomeration of high-end producer services has a positive impact on TFP. In the West, the agglomeration of high-end and low-end producer services has no significant impact on TFP. Based on this, this paper puts forward corresponding suggestions for the development of producer services in various regions of China in order to promote the promotion of urban TFP. KEYWORDS: agglomeration of productive service industries, urban total factor productivity; regional differences
I.
Introduction
The productive service industry characterizes by knowledge and human capital intensive and runs through many production links of industrial production, such as upstream, midstream, and downstream. It is the key "adhesive" for the accelerated integration and mutual promotion of the manufacturing industry and service industry, as well as the power source for the transformation and upgrading of the global industrial chain. In the late 20th century, the proportion of the added value and GDP of producer services in the central member countries of the organization for economic cooperation and development (OECD) was as high as one third, and the employment opportunities brought by the development of producer services far exceeded that of manufacturing. At present, the global economy is developing in the direction of "service-oriented economy," and the productive service activities such as product research and development, financial services, information services, commercial logistics services occupy an increasing share in the industrial value chain. With the development of communication networks and the progress of information technology, the agglomeration of producer services in space becomes more and more apparent, such as Shanghai Lujiazui financial trade center, Wall Street financial trade center. In some cities of our country, the agglomeration of producer services effectively alleviates resource constraints, promotes specialization, and reduces transaction costs. However, there has always been a problem of unbalanced regional development in China. There are considerable differences in the economic development level among the three regions, i.e., the East, the middle, and the West. The characteristics of producer service agglomeration are high in the East and low in the middle and West. The "agglomeration bonus" of producer service agglomeration can only release in some cities. So for a particular region, to what extent can producer services and its sub-sectors affect the total factor productivity of the city? Based on the characteristics of regional development, how to make a reasonable match between the agglomeration level of producer services and regional development, and better promote the promotion of urban TFP? Deepening the understanding of the above issues is of great theoretical and practical significance for policymakers to formulate reasonable industrial development policies and regional coordinated development strategies.
International Journal of Business Marketing and Management (IJBMM)
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