Does financial industry agglomeration affect the upgrading of manufacturing servitization in the digital economy era?

Abstract

ABSTRACT This paper explains how financial industry agglomeration promotes the upgrading of manufacturing servitization in the digital economy era. Then, it measures both the level of financial industry agglomeration and manufacturing servitization from the supply side and the relationship among financial industry agglomeration, digital finance, and manufacturing servitization for empirical testing. The research results show that financial industry agglomeration promotes the development of manufacturing servitization; financial industry agglomeration reduces digital finance, but digital finance promotes manufacturing servitization. Although there is a game at play between financial agglomeration and digital finance, the gaining effect of digital finance on the servitization of manufacturing is greater than the cutting effect of financial agglomeration on digital finance, so digital finance has a facilitating effect on the agglomeration of productive services for the servitization of manufacturing.