Productive Service Industry Research Articles

Protection of Innovative Achievements, Spatial Spillover, and Internal Structural Upgrading of the Productive Service Industry—Empirical Evidence from 28 Provinces in China

Protection of Innovative Achievements, Spatial Spillover, and Internal Structural Upgrading of the Productive Service Industry—Empirical Evidence from 28 Provinces in China

Cross border e-commerce development and enterprise digital technology innovation—empirical evidence from listed companies in China

As the main form of digital trade, cross-border e-commerce plays an important role, allowing China to expand its opening-up and promote the optimal foreign trade structure. It also provides opportunities for Chinese enterprises to develop digital technology. From the perspective of the establishment of China's cross-border e-commerce comprehensive pilot zone (CBECPZ), this article uses the multi-period DID method to examine the effects of cross-border e-commerce on enterprise digital technology innovation based on listed companies in the Shanghai and Shenzhen stock markets from 2007 to 2020. The CBECPZ dramatically promotes enterprise digital technology innovation. The mechanism test shows that the CBECPZ promotes digital technology innovation by financing constraint alleviation, digital transformation, and producer service industry agglomeration. The heterogeneity test shows that the direct effect is more significant in the enterprises of large-scale, non-state-owned, with high ICT correlation and in areas with strong government resource allocation capabilities. The research findings have important reference value for how to utilize cross-border e-commerce to promote digital technology innovation, and they also provide directional references for other developing countries to develop cross-border e-commerce.

The Empirical Study on Producer Service Industry and Economic Growth in China: Implication on Economic Integration

The Empirical Study on Producer Service Industry and Economic Growth in China: Implication on Economic Integration

How does artificial intelligence affect productivity and agglomeration? Evidence from China's listed enterprise data

In the digital economy era, artificial intelligence (AI) has advanced significantly and promoted productivity and productive service agglomeration. Using data on the productive service industry and AI in 27 provinces in China from 2006 to 2019, we investigated the influence of AI on productive services, and its direction and magnitude. We found that AI can promote the agglomeration of productive services directly or by enhancing productivity, and further analyzed the regional heterogeneity of the influence and mechanism.

Neighborhood externalities modify the nexus between residential land and housing prices: A joint analysis using regression tree models

Neighborhood externalities influence residential land prices and housing prices simultaneously, contributing to a nexus relationship between them. Most existing studies have focused on the causal relationship between the two, with limited attention to their nexus. This research matched land parcel transactions from 2003 to 2015 and housing transaction records with purchasers’ housing purchase records before 2019 to construct a spatial-temporal land-housing dataset in Shanghai. Both spatial statistical tools and regression tree models were employed to explore the underlying mechanism, focusing on proximity to industries. According to the modeling results, residential land prices and housing prices are highly sensitive to polluting industries and producer service industries. The impacts of polluting industries on residential land prices have intensified, but the impacts on housing prices have not. The regression tree models further showed that living service industries were the primary positive contributor to residential land and housing prices. Regarding the social environment, non-local people are taking over communities with high-priced housing on high-value residential land parcels. These research outcomes encourage more efforts to explore the determinants of the nexus between residential land prices and housing prices, rather than discussion of the causality relationship.

Spatial Relationship of Inter-City Population Movement and Socio-Economic Determinants: A Case Study in China Using Multiscale Geographically Weighted Regression

In the current field of regional studies, there is a growing focus on regional spatial relationships from the perspective of functional linkages between cities. Inter-city population movement serves as an embodiment of the integrated functionality of cities within a region, and this is closely tied to the socio-economic development of urban areas. This study utilized Location-Based Services (LBSs) to collect the scale of inter-city population movement across 355 cities in China. Additionally, socio-economic data published by local governments were incorporated. By establishing a Multiscale Geographically Weighted Regression (MGWR) model, this research explores the spatial relationships between inter-city population movement and socio-economic influencing factors in China. This study aims to elucidate the spatial scales of the relationships between various variables. Our research findings indicate that the relationship between inter-city population movement and potential socio-economic determinants exhibits spatial non-stationarity. It is better to explore this spatial relationship through the MGWR model as there are different determinants operating on inter-city population movement at different spatial scales. The spatial distribution of the coefficient estimates shows significant regional differences and numerical variations. In China’s economically developed coastal regions, there is relatively balanced development among cities, with advanced manufacturing and producer service industries acting as significant drivers of mobility. In inland regions of China, city size is the most influential variable, directing a substantial flow of human and economic resources towards regional socio-economic hubs such as provincial capitals. The main contribution of this study is the re-examination of the relationship between inter-city population movement and socio-economic factors from the perspective of spatial scales. This approach will help China to consider the heterogeneity of different regions more extensively when formulating regional development policies, thereby facilitating the targeted promotion of regional element flow.

Productive services agglomeration: An accelerator of manufacturing servitization output?

This study empirically investigates the impact of productive service agglomeration on manufacturing servitization and the heterogeneity of this impact. We found that (1) the productive service industry's agglomeration facilitates manufacturing servitization with a heterogeneous feature. Furthermore, (2) agglomeration of the private productive service sector is more conducive to promoting manufacturing servitization than the state-owned productive service sector. Finally, (3) the agglomeration of labor- and capital-intensive productive service industries has a more pronounced role in boosting manufacturing servitization. These findings contribute to optimizing industrial upgrade policies and corporate servitization strategies.

Utilization of foreign investment in the productive service industry in Hubei province, China and its optimization counter-measures.

The Global Investment Report 2023 revealed that after a sharp decline in 2020 and a strong rebound in 2021, global foreign direct investment (FDI) declined by 12 percent to $1.3 trillion in 2022. However, in developing countries, FDI increased by 4% to $916 billion, a record share of more than 70% of global flows. The number of greenfield investment projects in developing countries increased by 37 percent and international project finance transactions by 5 percent. Foreign investment from China, the second largest recipient of foreign investment globally, increased by 5 percent. The service industry has become the mainstream industry in the global FDI structure. The global industry is accelerating its transformation to a "service-based economy," international FDI in productive service industries has become an essential means of industrial transfer in developed countries and a meaningful way to upgrade the industrial structure and high-quality development in emerging economies. As a representative province in central China, Hubei Province has unique advantages in human capital, factor cost, and market potential, which provide preferential conditions to attract foreign investment. This paper first introduced the concept of the productive service industry, based on the relevant statistical data from 2011 to 2022, focused on the current situation of foreign investment utilization in five major sub-sectors of the productive service industry in Hubei Province in the past ten years, and empirically investigated the impact of foreign investment utilization in five major sub-sectors of the productive service industry on the economic growth of Hubei Province, and obtained that the level of foreign investment attraction varied significantly among the regions in Hubei Province. The three productive service industries, namely transportation, storage and postal services, information transmission, software and information technology services, and financial services, played a significant role in the active attraction and optimal utilization of foreign capital and the economic development of Hubei Province. Based on this, it was proposed to build a market-oriented rule of law and internationalized business environment, improve the infrastructure construction in different regions of the province, focus on the training of professional talents for the development of productive service industries, and pay attention to the improvement of independent innovation capacity.

Interactive relationship of manufacturing and producer service industries in the Beijing-Tianjin-Hebei region and mechanism

Interactive relationship of manufacturing and producer service industries in the Beijing-Tianjin-Hebei region and mechanism

The impact of collaborative agglomeration of manufacturing and producer services on carbon emission intensity: Influence mechanism and spatial effect.

Under the goal of " carbon peaking and carbon neutrality," how to create a low-carbon and green development path for cities is an urgent problem in China. One of the effective ways to solve this problem is through industrial collaborative agglomeration. In this paper, panel data of 276 prefecture-level cities in China from 2010 to 2020 was selected to investigate the relationship between the collaborative agglomeration of manufacturing and producer service and carbon emission intensity by using a fixed-effects model, intermediary model, and SDM in multiple dimensions. The study found that the collaborative agglomeration of manufacturing and producer service industries significantly influences carbon emission intensity with an inverted U-shaped curve, and the agglomeration of manufacturing and producer service industries can influence carbon emission intensity through technological progress. In addition, the inverted U-shaped impact of collaborative agglomeration of manufacturing and producer services on carbon emission intensity has a spatial spillover effect, and the spatial spillover effect generated is stronger than the impact on the local area. Moreover, from the perspective of industry heterogeneity, compared with low-end producer services, the agglomeration of manufacturing and high-end producer services can play a better role in carbon emission reduction. Regarding regional heterogeneity, compared with the central and western regions, the impact of manufacturing and production services agglomeration on carbon intensity is far more obvious in the more economically developed eastern regions.

The impact of structural upgrading of the service industry on regional ecologicalization efficiency of Industry: Empirical evidence from 30 Chinese provinces

With the wave of the digital economy and industrial ecological construction, it is more essential for developing countries to focus on improving the structural quality of the service industry rather than just the quantitative aspect of the service industry. This study utilizes panel data from 30 provinces in China and spatial Dubin models to estimate the impact of service industry structure upgrading on industrial ecologicalization efficiency and its spatial effect. Our results reveal that productive and high-end service industries play a vital role in promoting industrial ecological efficiency. At the level of spatial effect, the productive service industry has a negative spatial correlation with the adjacent area, while the effect of the high-end service industry on the adjacent area is not highlighted. This study focuses on clarifying the spatial role of service industry structure upgrading on the improvement of industrial ecological efficiency, further expanding the theory of industrial structure adjustment, and providing insights for developing countries on how to optimize the structure of the service industry and achieve high-quality development of industrial ecologicalization.

Study on the characteristics and synergistic effects of industrial complex networks – empirical evidence from Chinese manufacturing

PurposeThe manufacturing industry and the producer service industry have a high degree of industrial correlation, and their integration will cause changes in the complex industrial network topology, which is an important reason for the synergistic effect. This paper describes the topology of industrial systems using complex network theory; further, it discusses how to identify the criticality and importance of industrial nodes, and whether node characteristics cause synergistic effects.Design/methodology/approachBased on the input-output data of China in 2007, 2012 and 2017, this paper constructs the industrial complex network of 30 Chinese provinces and cities, and measures the regional network characteristics of the manufacturing industry. The fixed-effect panel regression model is adopted to test the influence of agglomeration degree and centrality on synergies, and its adjustment mechanism is explored.FindingsThe degree of network agglomeration in the manufacturing industry exerts a negative impact on the synergistic effect, while the centrality of the network exerts a significant promoting effect on the synergistic effect. The results of adjustment mechanism test show that enhancing the autonomous controllable ability of the regional industrial chain in the manufacturing industry can effectively reduce the effect of network characteristics on the synergistic effect.Research limitations/implicationsBased on input-output technology, this paper constructs a complex industrial network model, however, only basic flow data are used. Considerable in-depth and detailed research on the economic and technological connections within the industry should be conducted in the future. The selection of the evaluation index of the importance of industrial nodes also needs to be further considered. For historical reasons, it is also difficult to obtain and process data when carrying out quantitative analysis; therefore, it is necessary to make further attempts from the data source and the expression form of evaluation indicators.Practical implicationsIn a practical sense this has certain reference value for the formulation of manufacturing industrial policies the optimization of regional industrial layout and the improvement of the industrial development level. It is necessary to formulate targeted and specialized industrial development strategies according to the characteristics of the manufacturing industry appropriately regulate the autonomous controllable ability of the industrial chain and avoid to limit the development of industries which is in turn limited by regional resources. Industry competition and market congestion need to be reduced industry exchanges outside the region encouraged the industrial layout optimized and the construction of a modern industrial system accelerated.Social implicationsThe above research results hold certain reference importance for policy formulation related to the manufacturing industry, regional industrial layout optimization and industrial development level improvement. Targeted specialized industrial development strategies need to be formulated according to the characteristics of the manufacturing industry; the autonomous controllability of the industrial chain needs to be appropriately regulated; limitation of regional resources needs to be avoided as this restricts industrial development; and industry competition and market congestion need to be reduced. Agglomeration of production factors and optimization of resource allocation is an important part of a beneficial regional economic development strategy, and it is also an inevitable choice for industrialization to develop to a certain stage under the condition of a market economy. In alignment with the research conclusions, effective suggestions can be put forward for the current major industrial policies. In the process of promoting the development of the manufacturing industry, it is necessary for regional governments to carry out unified planning and guidance on the spatial layout of each manufacturing subsector. Regional governments need to effectively allocate inter-industry resources, better share economies of scale, constantly enhance the competitive advantages and competitiveness of development zones and new districts and promote the coordinated agglomeration and development of related industries with input industries. Industrial exchanges outside the region should be encouraged, the industrial layout should be optimized and the construction of a modern industrial system should be accelerated.Originality/valueComplex network theory is introduced to study the industrial synergy effect. A complex industrial network of China's 30 regions is built and key network nodes are measured. Based on the dimensionality of the “industrial node – industrial chain – industrial complex network”, the research path of industrial complex networks is improved.

THE IMPACT OF THE AGRICULTURAL PRODUCTIVE SERVICE INDUSTRY ON THE INCOME GAP BETWEEN URBAN AND RURAL RESIDENTS: EVIDENCE FROM 276 CHINESE PREFECTURE-LEVEL CITIES

Based on the panel data of 276 prefecture-level cities in China from 2009 to 2018, this paper explores the impact of the agricultural productive service industry on the income gap between urban and rural residents by constructing the spatial econometric model and threshold regression model. The results show that the development of the agricultural productive service industry has a significant spatial spillover effect, which has a significant restraining effect on widening the income gap between urban and rural residents in the neighboring areas. Developing the agricultural productive service industry in the eastern and central regions significantly narrows the income gap between urban and rural residents. There is a significant urbanization threshold effect on the impact of the agricultural productive service industry on the income gap between urban and rural residents. When the urbanization level crosses the threshold of 3.7469, the role of the agricultural productive service industry in reducing the income gap between urban and rural residents increases significantly. Therefore, this paper proposes accelerating the development of the agricultural productive service industry, improving the urban–rural integration mechanism, strengthening the coordinated development between regions and playing the external effects of the agricultural productive service industry.

Study on the Relationship between Energy Structure Change and Economic Structure in China

Since 1978, China's economic growth rate has attracted international attention. While China's economy has maintained rapid growth, energy consumption has shown an opposite trend, namely, the growth rate of energy consumption has slowed down, and the energy consumption intensity of the national economy has continued to decline. The tertiary industry is underdeveloped, and the producer service industry is stagnant, with outstanding problems. It is worth noting that the proportion of China's industrial added value in GDP(Gross Domestic Product) exceeded the peak value of developed countries during the Wang Yehua period. Under the new normal of economic growth shift and tight resource and environment constraints, structural contradictions will become more prominent in the coming period. In order to practice the low-carbon economic model, the government puts forward the requirements of ensuring China's energy and economic security and accelerating the transformation of energy revolution and economic development mode. However, structural adjustment is not a simple superposition of policies and measures. This paper studies the relationship between energy structure change and economic structure in China. Structural adjustment is not simply the superposition of policies and measures. We must also with comprehensive consideration of energy supply security and use security, so as to provide decision-making basis for ensuring energy security and carrying out national macro-control.

Does the Digital Economy Promote Industrial Collaboration and Agglomeration? Evidence from 286 Cities in China

Relying on high penetration and strong diffusion capabilities, the digital economy is becoming a new driving force for industrial integration and development. It is of great significance to promote the coordinated development of manufacturing and producer services. This paper took panel data on 286 prefecture-level cities and above in China from 2011 to 2019 as its research object, and used the two-way fixed effect model, threshold effect model, and the Spatial Durbin Model (SDM) as its econometric testing methods. This analysis explored the impact of the digital economy on the synergetic agglomeration between manufacturing and productive service industries in China. The results of the research showed that the synergetic agglomeration of industries is significantly promoted by the digital economy. This conclusion was still valid after an endogeneity test was carried out. The digital economy’s role was found to mainly involve promoting knowledge spillovers and expanding the market size. An in-depth analysis of the digital economy has enabled the collaborative agglomeration of manufacturing and producer services in large, medium-sized, and small cities. The digital economy had the greatest effect on small cities, followed by medium-sized cities and large cities. The synergetic aggregation between the manufacturing and high-end producer services industries is significantly promoted by the digital economy. However, it was not found to have had a significant effect on the synergetic agglomeration between the manufacturing and low-end producer services industries. The impact of the digital economy on industrial collaborative agglomeration is nonlinear. Only when the level of the digital economy exceeds the threshold can the promoting effect of the digital economy on industrial collaborative agglomeration be manifested. In summary, the development of the digital economy was found to have promoted industrial collaboration and agglomeration in the study areas and their neighboring regions in the study period. The research results of this article are of great significance for achieving the goal of the “two-wheel drive” of the manufacturing and producer services industries, as well as high-quality economic development in China.

Agglomeration of the Digital Services Industry and Digital Transformation: Evidence from China

ABSTRACT This study examines the relationship between the agglomeration of the digital service industry (ADS) and listed companies’ digital transformation in China. We analyze panel data from 282 prefecture-level cities and listed companies for 2010–2019. The results reveal that ADS has an indirect positive effect on listed companies’ digital transformation by improving firms’ innovation inputs and decreasing their operating costs. These findings hold after using instrumental variables to solve the endogeneity problem and conducting robustness tests. Digital services is the only producer service industry whose agglomeration influences listed companies’ digital transformation. The impact of ADS on digital transformation is strongest in manufacturing, non-state-owned, and small and medium-sized enterprises.

The impact of environmental regulation and industrial agglomeration on air pollution: on the spatial spillover perspective

AbstractThis paper uses the panel data of 275 prefecture-level cities in China in 2003–2019 and spatial Durbin model to verify the impact of environmental regulation and industrial agglomeration on air pollution. This paper finds that the enforcement intensity of environmental regulations (ER) is not consistent among cities. The effects of strict ER on air pollution in local city are the inverted-U-shape curve. The effects of more stringent ER in adjacent cities j on air pollution in city i are the U-shape curve. The more stringent ER in local city may lead to the decrease in agglomeration of manufacturing sectors (AM), thereby reducing air pollution. The polluting firms may shift production from neighboring cities j with stringent ER to city i with lax ER, thereby leading to the increase in AM, which aggravate air pollution in city i. The more stringent ER in local city i may lead to the increase in agglomeration of productive service industry (AS), thereby reducing air pollution. To avoid the transfer of polluting industrial sectors, the paper suggests that the more stringent implementation of ER should become nationwide actions.

Explaining and modeling the impact of industrial co-agglomeration on regional economic growth in China: integrated a quality concern of night-time light perspective.

The double-wheel drive of manufacturing industries and producer services industries is one of the key pathways to promote high-quality development relying on a modern industrial system. This paper explores the impacts of industrial co-agglomeration on regional economic growth in China with systematic consideration of static, dynamic, and spatio-temporal perspectives based on panel data for 285 prefecture-level cities from 2003 to 2020, employing the consolidated night-time light data. The empirical results show that industrial co-agglomeration significantly accelerates regional economic growth, especially high-tech intensity producer services industries, information industries, and finance industries. In addition, its spatial spillover effects are evidently established, which are characterized by cyclic accumulative, feedback features, and distance attenuation. Carrying out robustness tests, the preliminary regression results are verified. The heterogeneous influences are established across cities with different geographical locations, innovation capacities, and resource endowments. The further mechanism analysis indicates that industrial upgrading, technological progress, and efficiency enhancements account for the main channels for a sharp promotion in regional economic growth over the sample period. Furthermore, the government moderates this process more significantly than market forces do, especially when it comes to macroexogenous shocks that are regulated by the government. The findings of this study recommend policymakers to give full play to the positive externalities of industrial co-agglomeration and accelerate the industrial co-agglomeration process in a reasonable manner, so as to promote high-quality economic growth in China.

Research on the Influencing Factors of The Green Coordinated Development of Productive Service Industry and Manufacturing Industry Under the Background of Dual Carbon

Under the dual-carbon background, along with the process of the two-wheel drive development strategy, the industrial synergistic agglomeration has quietly become the "new normal" of urban industrial spatial layout, and the green total factor productivity has become an essential measure of the quality of economic development of cities in China. This project takes the synergistic agglomeration at the factor level between the productive service industry and manufacturing industry as the perspective and analyzes the realization mechanism of green total factor productivity growth under the synergistic agglomeration of the manufacturing industry and productive service industry from the current situation of China's industrial development, which is also a deepening and expanding of the theory of agglomeration economy. This project first discusses the "greening" issue in the development process of the productive service industry and manufacturing industry, and applies the super-efficient DEA model to account for the green total factor productivity of the productive service industry and manufacturing industry according to the difference of industrial characteristics, and then expounds the inner mechanism of green total factor productivity growth under the synergistic agglomeration of industries. Then, the panel data of 24 provinces in China are used to modify the existing indexes for measuring the level of industrial synergistic agglomeration and analyze the impact factors of the synergistic evolution of the productive service industry and the manufacturing industry on the green total factor productivity. Finally, through scenario simulation analysis, different policy scenarios with different policy incentives are set up to study the impact of policy incentives further and propose corresponding policy recommendations.

Research on Industry Transformation Models and Influencing Factors of Hot Spring Villages from the Perspective of Sustainable Development: A Case Study of Fujian, China

The industrial transformation of hot spring villages is an important means to promote the sustainable development of the rural economy and achieve common prosperity. This study aims to explore the models of hot spring industrial transformation and reveal the influencing mechanisms in hot spring villages. Based on the theory of rural industrial transformation, an evaluation index system was constructed to measure rural industrial development by using the attribute data of enterprises in hot spring villages. Taking 19 typical hot spring villages in Fujian Province of China as examples, this study explores the process, models and influencing factors of the industrial transformation of hot spring villages from a sustainable perspective. Research results show that (1) the industrial transformation of the hot spring village includes the initial development stage and the rapid development stage, with the leading industries being transformed into service industries. (2) The industrial transformation of the hot spring village presents a gradual transformation model from hot spring aquaculture to hot spring processing and hot spring services, which not only reflects the transformation process of the hot spring village from the development of its primary industry to that of its secondary and tertiary industries, but also reveals the transformation trend of specialization and the high-end productive service industry and the convenient and high-quality transformation process of the living service industry. (3) The influencing factors of the industrial transformation of the hot spring village mainly include location conditions, the demand of the rural hot spring tourism market, government funding policy support and the choices of local villagers. This study not only enriches the theory of industrial transformation in resource-based rural areas, but also provides decision-making references for the sustainable development of hot spring villages in practice.