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An Empirical Study of Shandong Producer Service Industry Agglomeration and Its Effect on Manufacturing Industry

Author: GuWeiYang
Tutor: XinHong
School: Hebei University of Economics
Course: Regional Economics
Keywords: producer service agglomeration effect on manufacturing empirical study
CLC: F427
Type: Master's thesis
Year: 2014
Downloads: 10
Quote: 0
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Content: Since nineteen eighties, the main western developed countries have entered theera of "service economy". Particularly, modern producer service graw rapidly and became animportant driving force of economic growth. In recent years, producer service in our countryalso developed quickly. On the research of producer services, many domestic and foreignscholars have done comprehensive studies, mostly on the connotation and classification ofproducer services, the development, influencing factors and evaluation of competitiveness ofproducer services, the relationship between economic growth or city development andproducer services, the relationship between producer service and manufacturing, andagglomeration, spatial distribution, regional comparison and division of producer services. Incurrent, domestic scholars’ studies about agglomeration of producer services mainlyconcentrated on the Beijing Tianjin Hebei region, the Yangtze River Delta and the Pearl RiverDelta region. They seldom do researches on producer service industry agglomeration ofShandong Province, and the role of agglomeration of producer service industry onmanufacturing efficiency. Therefore, this paper selects Shandong producer service industryagglomeration as the research object, and conducts an empirical study on the effect of theproducer services agglomeration on manufacturing labor productivity.This text is divided into six parts. The first part elaborates the context and significance ofthe study subject,the main content and research methods, and the possible innovation anddeficiency of this paper. The second part is the literature review of related research on theconnotation and extension of producer service industry classification, relevant problems aboutproducer service industry agglomeration, and the relationship between producer serviceindustry and manufacturing industry etc.. By summarizing previous literature and combiningwith the intermediate demand rate of every sub sector of service industry, this paper definesproducer services as transportation, storage and post services, information transmitting,computer service and software, wholesale and retail trade, finance, leasing and businessservices, scientific research, technical services and geological prospecting. The third partmainly uses the added value, employment and other data, and analyzes the overalldevelopment of the producer service industry in Shandong Province, finds that the internal structure of producer service industry in Shandong province is extremely unreasonable.Compared with the developed coastal provinces such as Guangdong, Jiangsu, Zhejiang, theratios of the two traditional labor-intensive service industry—wholesale and retail trade,and transportation, storage and post services—are too high. However, the other fourmodern service industry proportion is low and their development is relatively backward. Thefourth part respectively uses primacy index, special Gini coefficient, and location quotient tomeasure the agglomeration of producer services industries in Shandong province. The resultsshow that in Shandong province, the agglomeration degrees of leasing and business services,transportation, storage and post services, and scientific research, technical services andgeological prospecting are relatively high. In terms of cities they agglomerate, theagglomeration degrees of six producer services industries in Ji’nan are all very high andoverall lead in the province wide. In Qingdao, Yantai, Dongying, Rizhao and Linyi city, thereis one or more producer service industries have a high agglomeration level. The fifth part usesthe modified Cobb Douglas production function model to conduct an empirical study on therelationship between the producer services agglomeration and manufacturing. It finds thatagglomeration of the whole producer services has no significant effect on manufacturing laborproductivity, and in regard to Sub-sectors, the agglomeration levels of scientific research,technical services and geological prospecting, and leasing and business services have asignificant impact on the manufacturing labor productivity, but this effect is relatively small.The sixth part summarizes the main conclusions, and puts forward some suggestions on thedevelopment of producer service in Shandong province.

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