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Spatial Evolution of Producer Service Sectors and Its Influencing Factors in Cities: A Case Study of Hangzhou, China

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  • Yizhou Wu

    () (Department of Urban Planning, Zhejiang University of Technology, Hangzhou 310058, China)

  • Peilei Fan

    () (School of Planning, Design, and Construction & Center of Global Change and Earth Observation, Michigan State University, East Lansing, MI 48824, USA)

  • Heyuan You

    () (School of Public Administration, Zhejiang University of Finance and Economics, Hangzhou 310018, China)

Abstract

Producer service industries are an important feature in the current development of a metropolis. Researchers from different countries are increasingly concerned about location changes and the motives of producer service sectors in cities. Given the rapid development of producer service sectors in developing countries, this study examines changes in the distribution of producer service sectors over the past decade and factors influencing them in a case study using the city of Hangzhou in China. Results show that Hangzhou’s producer service sector is still mainly concentrated in the central business district (CBD). However, a distinct trend of diffusion to suburban areas was observed, which formed several secondary clusters on the periphery of the city. Locations of the CBD, sub-centers, and professional clusters of producer service sectors established by the government are the most important factors that affect the spatial distribution of producer service sectors. The main influencing factors for the spatial evolution of producer service sectors are: (1) the high development cost and residential suburbanization of the central areas of the city promote the development of producer service sectors toward the periphery; (2) city planning has guided the clustering of producer service sectors on the city’s CBD and secondary city centers; (3) city renewal has provided personalized and diversified development space for producer service sectors; (4) incentive policies introduced by the government, such as rentals, and taxes have enhanced the orderly aggregation of producer service sectors.

Suggested Citation

  • Yizhou Wu & Peilei Fan & Heyuan You, 2018. "Spatial Evolution of Producer Service Sectors and Its Influencing Factors in Cities: A Case Study of Hangzhou, China," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-23, March.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:975-:d:138217
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    References listed on IDEAS

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    Cited by:

    1. Anna Visvizi & Miltiadis D. Lytras, 2018. "It’s Not a Fad: Smart Cities and Smart Villages Research in European and Global Contexts," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-10, August.
    2. Yizhou Wu & Xiaohong Zheng & Li Sheng & Heyuan You, 0. "Exploring the Equity and Spatial Evidence of Educational Facilities in Hangzhou, China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 0, pages 1-22.
    3. Yizhou Wu & Xiaohong Zheng & Li Sheng & Heyuan You, 2020. "Exploring the Equity and Spatial Evidence of Educational Facilities in Hangzhou, China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 1075-1096, October.

    More about this item

    Keywords

    producer service sector; industry location; spatial evolution; influencing factors; Hangzhou;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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