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Synergy and Co-agglomeration of Producer Services and Manufacturing: A Panel Data Analysis of Chinese Cities

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  • Shanzi Ke
  • Ming He
  • Chenhua Yuan

Abstract

Ke S., He M. and Yuan C. Synergy and co-agglomeration of producer services and manufacturing: a panel data analysis of Chinese cities, Regional Studies . This paper constructs a simultaneous equation model of co-agglomeration of producer services and manufacturing that highlights the synergy effects of the two sectors located in the same cities or neighbouring cities. It applies the fixed effects instrumental variable (FE IV) estimator to a panel dataset of 286 Chinese cities for the years 2003-2008. The FE IV spatial econometric estimates indicate that manufacturing industry tends to locate in the cities where producer services are located, and vice versa; a city's manufacturing (producer services) might relocate if producer services (manufacturing) agglomerated in the neighbouring cities; and agglomeration of each industry has spillover effects within its own industry across neighbouring cities.

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  • Shanzi Ke & Ming He & Chenhua Yuan, 2014. "Synergy and Co-agglomeration of Producer Services and Manufacturing: A Panel Data Analysis of Chinese Cities," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1829-1841, November.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:11:p:1829-1841
    DOI: 10.1080/00343404.2012.756580
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    2. Tuochen Li & Dongri Han & Shaosong Feng & Lei Liang, 2019. "Can Industrial Co-Agglomeration between Producer Services and Manufacturing Reduce Carbon Intensity in China?," Sustainability, MDPI, vol. 11(15), pages 1-15, July.
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    4. Yao, Yao & Chen, George S. & Zhang, Lin, 2021. "Local financial intermediation and foreign direct investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 198-216.
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    6. Lanaspa, Luis & Sanz-Gracia, Fernando & Vera-Cabello, María, 2016. "The (strong) interdependence between intermediate producer services' attributes and manufacturing location," Economic Modelling, Elsevier, vol. 57(C), pages 1-12.
    7. Xiaowen Wang & Nishang Tian & Shuting Wang, 2022. "The Impact of Information and Communication Technology Industrial Co-Agglomeration on Carbon Productivity with the Background of the Digital Economy: Empirical Evidence from China," IJERPH, MDPI, vol. 20(1), pages 1-21, December.
    8. Han, Feng & Ke, Shanzi, 2016. "The effects of factor proximity and market potential on urban manufacturing output," China Economic Review, Elsevier, vol. 39(C), pages 31-45.
    9. Ming He & Yang Chen & Ron Schramm, 2018. "Technological spillovers in space and firm productivity: Evidence from China’s electric apparatus industry," Urban Studies, Urban Studies Journal Limited, vol. 55(11), pages 2522-2541, August.
    10. Haochang Yang & Faming Zhang & Yixin He, 2021. "Exploring the effect of producer services and manufacturing industrial co-agglomeration on the ecological environment pollution control in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16119-16144, November.
    11. Lu Zhang & Renyan Mu & Nigatu Mengesha Fentaw & Yuanfang Zhan & Feng Zhang & Jixin Zhang, 2022. "Industrial Coagglomeration, Green Innovation, and Manufacturing Carbon Emissions: Coagglomeration’s Dynamic Evolution Perspective," IJERPH, MDPI, vol. 19(21), pages 1-19, October.
    12. Haojun Wang & Xiao Su & Jun M. Liu, 2023. "The Spatial Spillover Effect of Logistics and Manufacturing Co-Agglomeration on Regional Economic Resilience: Evidence from China’s Provincial Panel Data," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    13. Mei Song & Yujin Gao & Furong Dong & Yunan Feng, 2023. "Research on the Spatial Spillover Effect of Industrial Agglomeration on the Economic Growth in the Yellow River Basin," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    14. Du, Mengfan & Zhang, Yue-Jun, 2023. "The impact of producer services agglomeration on green economic development: Evidence from 278 Chinese cities," Energy Economics, Elsevier, vol. 124(C).
    15. Zhao, Xin & Nakonieczny, Joanna & Jabeen, Fauzia & Shahzad, Umer & Jia, Wenxing, 2022. "Does green innovation induce green total factor productivity? Novel findings from Chinese city level data," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    16. Chen, Xu & Xu, Huilin & Zhang, Liang & Cao, Huiping, 2022. "Spatial functional division, infrastructure and carbon emissions: Evidence from China," Energy, Elsevier, vol. 256(C).
    17. Ying Liu & Lin Li & Fei Teng Zheng, 2019. "Regional Synergy and Economic Growth: Evidence from Total Effect and Regional Effect in China," International Regional Science Review, , vol. 42(5-6), pages 431-458, September.
    18. Junwei Ma & Jianhua Wang & Philip Szmedra, 2020. "Does Environmental Innovation Improve Environmental Productivity?—An Empirical Study Based on the Spatial Panel Data Model of Chinese Urban Agglomerations," IJERPH, MDPI, vol. 17(17), pages 1-18, August.
    19. Shulin Wan & Weixin Luan & Qiaoqiao Lin, 2021. "Industry linkage, spatial correlation, and city exports: case study of the textile and clothing export industry in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 91-112, February.
    20. Dan He & Jialiang Yang & Zhengming Wang & Wenchao Li, 2020. "Has the manufacturing policy helped to promote the logistics industry?," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-21, July.
    21. Zheng, Dan & Shi, Minjun, 2018. "Industrial land policy, firm heterogeneity and firm location choice: Evidence from China," Land Use Policy, Elsevier, vol. 76(C), pages 58-67.
    22. Rulong Zhuang & Kena Mi & Zhangwei Feng, 2021. "Industrial Co-Agglomeration and Air Pollution Reduction: An Empirical Evidence Based on Provincial Panel Data," IJERPH, MDPI, vol. 18(22), pages 1-19, November.
    23. 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, vol. 10(4), pages 1-23, March.

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