Service Agglomeration Research Articles

From sustainable development towards resilience: Does digital finance matter in enhancing ecological resilience?

AbstractDigital finance, as a representative of the digital economy, provides unprecedented opportunities for enhancing the adaptability and resilience of ecosystems. However, there is currently no literature that integrates digital finance and urban ecological resilience into the same research framework. In light of this, we utilize panel data from 2011 to 2019 to investigate the impact of digital finance on ecological resilience. Our results indicate that (1) Digital finance can effectively enhance ecological resilience, a conclusion corroborated by both theoretical frameworks and empirical evidence. Specifically, the coverage breadth and usage depth of digital finance can effectively enhance ecological resilience, while the digitization level has not shown a significant impact. (2) Green technological innovation, improvements in energy efficiency, and the agglomeration of producer services are identified as effective channels through which digital finance promotes ecological resilience. (3) The impact of digital finance on ecological resilience exhibits significant regional heterogeneity, with more pronounced effects observed in cities with advanced traditional financial systems, non‐resource‐based cities, and central cities. These findings will help policymakers better understand the relationship between digital finance and urban ecological resilience, and formulate targeted policies that leverage digital finance development to enhance ecological resilience.

The impact of collaborative agglomeration of manufacturing and services on carbon emission efficiency: spatial effect and mechanism analysis

ABSTRACT Urban economic development benefits from industrial agglomeration by enhancing efficiency, but it may also bring negative effects, such as environmental pollution. This research uses data from 283 Chinese cities from 2007 to 2019, and applies the Spatial Durbin Model to investigate the spatial effects of industrial agglomeration on carbon emission efficiency, along with its impact mechanisms at various stages of collaborative agglomeration between the manufacturing and service sectors. The results indicate that: (1) The upgrading of the service industry from consumption-oriented to production-oriented has proved to be conducive to enhancing carbon emission efficiency and alleviating the environmental problems associated with manufacturing agglomeration. (2) The industrial collaborative agglomeration exerts a spatial spillover effect on carbon emission efficiency. Over time, as the degree of industrial collaborative agglomeration reaches a specific threshold, it positively impacts the carbon emission efficiency within the local area but exerts an inhibitory effect in neighboring regions. (3) The urban agglomerations of Yangtze River Delta, Beijing-Tianjin-Hebei, and Pearl River Delta regions, along with low-carbon pilot cities, demonstrate a greater capacity to enhance the positive impact of industrial collaborative agglomeration on carbon emission efficiency. (4) Collaborative industrial clustering fosters technological progress through domestic technology transfer and green technology innovation. It also mitigates mismatches between labor and capital, enhances land-intensive utilization efficiency, and optimizes resource allocation, ultimately leading to improve carbon emission efficiency. This research contributes to China’s economic and social transition towards a low-carbon future and provides valuable insights for the green development and industrial upgrading of developing countries.

Unleashing the power of green fiscal policies: Driving energy efficiency in China

This study examines the impact of such policies on energy efficiency by focusing on the “National Comprehensive Demonstration of Energy Saving and Emission Reduction Fiscal Policy” (ESER fiscal policy). Using a difference-in-difference method with multiple time points, the study finds that the ESER fiscal policy has significantly closed the total factor energy efficiency (TFEE) gap. The results are robust, supported by sensitivity analyses such as variable substitutions, dynamic effect tests, exclusion of potential intervening variables, placebo tests, and propensity score matching. Mechanism analysis shows that the pilot program closes the energy efficiency gap by increasing expenditure on environmental protection, improving agglomeration of productive services, and promoting of green technological innovation. Furthermore, the impact of green fiscal policies on TFEE is more pronounced in cities within two-control areas, non-old industrial base cities, large-scale cities, and resource-depleted cities. The analysis of the energy rebound effect found that green fiscal policies can effectively close the energy efficiency gap without generating energy rebound. These findings provide valuable insights and empirical evidence on the effectiveness of China's green fiscal policies in achieving green development, improving quality and efficiency.

Producer services agglomeration and low-carbon economic transition: the role of economic growth target constraint

Abstract Objective. Producer services are an intermediate input factor that permeates every link in the industrial production chain and is essential to the growth of a low-carbon economy. This study aims to elucidate the connection between producer services agglomeration (PSA) and low-carbon economic transition. Methods. Based on China’s provincial panel data from 2004 to 2021, we empirically test the influence of PSA on low-carbon economic transition using a two-way fixed effects model, and utilize government work reports to construct an indicator of economic growth target constraints and its characteristics to further explore its moderating effect. Results. PSA contributes to enhancing low-carbon economic transition. The heterogeneity test finds that PSA significantly helps low-carbon economic transition in the east and west regions, but not in the central region. The quantile regression findings demonstrate that PSA is more effective at raising the level of low-carbon economic transition at the 10th and 90th quantiles, which indicates that the carbon reduction and efficiency enhancement effects of PSA play a greater role in regions with lower and higher low-carbon economic transition levels. Further research presents that the economic growth target constraint negatively moderates PSA’s impact on low-carbon economic transition, but this constraint characterized by soft constraints strengthens the positive effect of PSA on low-carbon economic transition. Implications. In view of this, the government can foster PSA in accordance with local conditions, optimize agglomeration area layout, and establish a scientific and reasonable government target management system to strengthen low-carbon and high-quality economic development.

Exploring the impacts of producer services agglomeration on manufacturing carbon emissions: Empirical evidence from China.

This study employs panel data from 30 provinces and cities in China from 2004 to 2019 to empirically estimate the relationship between producer services agglomeration (PSA) and manufacturing carbon emissions. The findings suggest that such agglomeration is beneficial for lowering carbon emissions in manufacturing, and this conclusion passes multiple robustness tests. Heterogeneity analysis results show that PSA in the east and west regions significantly lowers manufacturing carbon emissions, while its impact in the central region is not significant. High-end PSA is beneficial for cutting carbon emissions in manufacturing, but the inhibitory effect of middle- and low-end PSA is not significant. PSA significantly suppresses carbon emissions from capital- and technology-intensive manufacturing, while it has little impact on carbon emissions from labor-intensive manufacturing. Further analysis reveals that PSA has a dual-threshold impact based on absorptive capacity and a single-threshold effect based on infrastructure level on manufacturing carbon emissions. As the absorption capacity crosses the second threshold or the infrastructure level crosses the first threshold, the inhibition effect of PSA on manufacturing carbon emissions begins to become prominent and shows a trend of enhancement. Our research findings provide theoretical and empirical bases for lowering carbon emissions in the manufacturing sector and fostering its ascent to the highest position of the value chain.

Does transportation infrastructure contribute to urban entrepreneurship? Evidence from the high-speed railway in China

High-speed railways have a profound impact on entrepreneurship. Adopted China's city panel data, we use a time-varying DID model to estimate the influence of the high-speed railways on urban entrepreneurship and study its mechanism. The analysis results reveal that high-speed railways have improved the entrepreneurial vitality of cities. The mechanism test suggests that high-speed railway promotes entrepreneurship activities by accelerating human capital flow, strengthening producer services agglomeration, and promoting market integration. A range of robustness tests including a parallel trend test, placebo test, and PSM-DID model are used to ensure the reliability of the empirical results. Heterogeneity analysis and spatial analysis are used to deepen the research. Heterogeneity analysis reveals that high-speed railway construction is likely to motivate entrepreneurship in eastern cities, big cities, and cities with high-level business environments. The spatial analysis results show that the opening of the high-speed railways promotes the entrepreneurial level of surrounding cities. The research results help to evaluate the economic benefits of high-speed railway network expansion, and provide decision-making references for stimulating urban entrepreneurship.

How producer services agglomeration affects urban green innovation efficiency in China: a spatial correlation and nonlinear perspective

How producer services agglomeration affects urban green innovation efficiency in China: a spatial correlation and nonlinear perspective

Advancing towards a low-carbon urban future in China: the role of producer services agglomeration

Advancing towards a low-carbon urban future in China: the role of producer services agglomeration

Analysis of the Effect of Environmental Regulation on Eco-Efficiency of Service Sector

The green transformation of the service sector is crucial for promoting the construction of ecological civilization and boosting high-quality development. The aim of the relationship between environmental regulation and eco-efficiency is to explore the path of the green transformation of the service sector. Based on the provincial data in China from 2001~2019, this study investigated the effect of environmental regulation on the eco-efficiency of the service sector, concentrating on the influencing mechanism and threshold effect of environmental regulation on the eco-efficiency of the largest service sector in the Chinese economy. Applying the panel OLS model, mediating model, and threshold effect model. The main findings are as follows. First, environmental regulation is not beneficial for boosting the eco-efficiency of the service sector because of compliance costs. Second, environmental regulation can reduce the eco-efficiency of the service sector through service agglomeration. However, the effect of innovation compensation can hinder the negative influence of environmental regulation on the eco-efficiency of the service sector. Third, the inhibiting effect of environmental regulation disappears non-linearly with boosting economic development. Conversely, the positive influence of environmental regulation becomes negative, along with improving service agglomeration. At last, this study provided recommendations for the policymakers who hope to accelerate the green transformation of the service sector from the perspectives of strengthening technological innovation, reducing agglomeration, and establishing coordinated development mechanisms.

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.

Producer services agglomeration and green growth: evidence from China

Producer services agglomeration and green growth: evidence from China

Assessing the impact of industrial intelligence on urban carbon emission performance: Evidence from China

With the growing emphasis on sustainable development, there has been increasing attention given to measures aimed at promoting environmental improvements and reducing carbon emissions, including the adoption of intelligent industry. Recent studies have analyzed the influence of industrial intelligence on urban carbon emission performance while ignore the spatial spillover effects and lack in-depth discussion of the mechanisms, which reduces the reliability of the assessment of industrial intelligence's impact on carbon emission performance. To address this issue, the paper examines direct effect, spatial spillover effects, and mechanisms, utilizing a balanced panel data from 2008 to 2019 for 238 Chinese cities. The findings reveal that a 1 % improvement in industrial intelligence results in a 2.747 % enhancement of local carbon emission performance. Moreover, through the spatial spillover analysis, we determined that industrial intelligence has a notable negative impact on the carbon emission performance of surrounding areas. The mechanism analysis demonstrated that industrial intelligence affects the carbon emission performance of local and neighboring areas by influencing the agglomeration of productive services. Furthermore, our study illustrates that the industrial intelligence's enhancement effect on carbon emission performance shows more significantly in eastern, resource-dependent, and ordinary prefecture-level cities. Finally, endogeneity and robustness tests conducted yielded consistent conclusions. Our study provides a new perspective on industrial intelligence's carbon reduction effect and contributes to the development of policies related to industrial upgrading and green development.

Does producer services agglomeration improve industrial energy efficiency in China?

Promoting structural transformation and energy efficiency improvement by grouping productive services is a significant action for China's targets of realizing carbon neutrality and carbon peak. This study employs the spatial Durbin model to explore the influences of the agglomeration of producer services (producer services agglomeration) on industrial energy efficiency using panel data from China, specifically from its prefecture-level cities. It turned out that the specialization producer services agglomeration has effectively improved the industrial energy efficiency of the city and its adjacent areas. However, the producer services agglomeration in diverse fields only plays a positive stimulating role in the energy efficiency standards of the city. After changing the industrial energy efficiency index, and sample size and considering endogeneity, the test results agree with the benchmark estimation outcomes. Additional research indicates that technological spillovers and manufacturing production costs exert a significant mediation influence in the process of promoting energy efficiency by producer services agglomeration. Furthermore, the producer services agglomeration has a substantial heterogeneous effect on the industrial energy efficiency due to differences in industry types of producer services. The conclusion of this article is of considerable relevance for China to rely on the producer services agglomeration to support effective energy utilization, as well as green and sustainable economic development.

How Does Diversification of Producer Services Agglomeration Help Reduce Carbon Emissions Intensity? Evidence from 252 Chinese Cities, 2005–2018

Mitigating carbon emissions intensity (CEI) and promoting carbon neutrality at the city level are essential for addressing the challenges of global climate change and advancing sustainable development. This study examines the influence of producer services agglomeration diversification (PSAD) on CEI using an unbalanced panel dataset including 252 Chinese prefectural-level cities from 2005 to 2018 for empirical analyses. We find that improving PSAD in a city can significantly mitigate CEI. Stronger PSAD accelerates a city’s industrial structure transformation from secondary- to tertiary-dominated in addition to boosting green development capabilities, both of which are confirmed to have concrete carbon emissions reduction effects. Furthermore, PSAD only significantly alleviates CEI in non-eastern cities in China, and the benefits of carbon emissions reduction are stronger after 2010. Our policy insights highlight land utilization in shaping the intracity layouts of producer services agglomerations (PSAs) and stress regional-level measures. Recognizing regional differences and integrating PSAs allocation with broader institutional measures can amplify PSAD’s benefits.

Broadband infrastructure and urban carbon emissions: Quasi-experimental evidence from China

As the fundamental foundation of digital economy development, broadband infrastructure has a crucial role in promoting economic growth; however, the influence of broadband infrastructure on carbon emissions remains uncertain. This study examines whether broadband infrastructure is correlated with reduced urban carbon emissions, using a multiperiod difference-in-differences (DID) model with Broadband China pilot policy implementation as a quasi-natural experiment. We assess the effects of broadband infrastructure on urban carbon emissions employing a sample of 285 Chinese cities from 2008 to 2019. The findings reveal that broadband infrastructure is correlated with significantly reduced carbon emissions, indicating an average emissions reduction of 12% to 17% in pilot cities compared with nonpilot cities. Broadband infrastructure appears to have a delayed, cumulative effect on emissions reduction. Mechanism tests indicate that broadband infrastructure promotes carbon emissions reduction through industrial structure upgrading, green technology innovation, and producer services agglomeration. Regarding city heterogeneity, broadband infrastructure contributes to more carbon emissions reduction in eastern and southern cities, large cities, and resource-based cities. Our study offers some primary evidence of broadband infrastructure's influence on achieving economic growth and sustainable development.

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.

Influence mechanism of industrial agglomeration on carbon emission intensity-a perspective on borrowing performance.

Under the background of urban connectivity, whether there are similarities and differences in the impacts of local industrial agglomeration and inter-city industrial agglomeration borrowing performance on carbon emission intensity(CI), and how cities can fully utilize the external force-borrowing performance to reduce local CI, these issues are of great significance for the cost saving and efficiency enhancement in the process of carbon emission (CE) reduction. Based on panel data of 280 prefecture-level cities in China from 2003 to 2020, the panel dual fixed-effect model, instrumental variable method, and adjustment effect model were used to analyze the impacts of the manufacturing agglomeration (MA), producer service agglomeration (PA), and the collaborative agglomeration (CA) on the CI from the perspective of individual cities and the urban system. The results showed that the influence of MA on CI presents a significant inverted U-shaped relationship, PA significantly reduces CI, and the CA of the two industries increases CI. Further analysis showed that the borrowing MA performance improves CI, especially in newer industrial-based cities, non-resource-based cities, and medium and big cities; the borrowing PA performance reduces CI, especially in old industrial-based cities, non-resource-based cities, and large cities; and the borrowing CA performance has no significant effect on CI. In addition, the development of the Internet strengthens the influence of borrowing performance in MA and PA on CI.

Cross-Border E-Commerce and Urban Entrepreneurial Vitality—A Quasi-Natural Experiment Evidence from China

Cross-border e-commerce, as a new form of trade driven by digital technology, provides an opportunity to enhance the entrepreneurial vitality of cities. With the help of the comprehensive pilot area for cross-border e-commerce, also called a “quasi-natural” experiment, and using 2010–2020 panel data and Chinese business enterprise registration data for 278 cities in China, this paper examined the impact of cross-border e-commerce on enterprise vitality. The study found that the pilot policy in the comprehensive pilot area promoted the entrepreneurial vitality to increase by about 13.3%, and it remained stable after a series of tests. The heterogeneity analysis shows that the pilot policies in the comprehensive pilot areas have a stronger effect on the promotion of enterprise vitality in the eastern and western regions. At the same time, the pilot policy has expanded the scope of enterprise subjects and plays a more prominent enterprise incentive effect in small and medium-sized cities, cities with low innovation, and small and medium-sized registered enterprises. In addition, the pilot policy stimulates the entrepreneurial vitality of the service industry, but has no significant impact on agriculture and manufacturing. In terms of the influence mechanism, the comprehensive pilot area mainly affects the entrepreneurial vitality by means of optimizing the business environment, reducing the entry cost, promoting the synergistic agglomeration of manufacturing and producer services, and stimulating market demand. The further spatial spillover effect found that the comprehensive pilot area not only improves the entrepreneurial vitality of the pilot cities, but also radiates the enterprise development of neighboring and surrounding cities with similar economic development.

Digital transformation, productive services agglomeration and innovation performance

Innovation is a necessary guarantee for sustainable development. Stepping into the digital age, digital transformation has triggered the innovation revolution. This paper takes 30 provinces in China from 2012 to 2022 as the research sample, we verify whether digital transformation has improved innovation performance. Based on the Solow growth model and agglomeration economics theory, we also explore the moderating role and threshold effect of agglomeration in productive service industry between digital transformation and innovation performance. To achieve this, we apply the methods of machine learning and text analysis to construct an evaluation index of regional digital transformation and measure it. The paper finds that China's digital transformation index is increasing, but there is a digital divide between regions. We also determine that digital transformation significantly and positively contributes to the level of innovation performance. Considering the threshold effect of agglomeration in productive service industry, the impact of digital transformation on innovation performance exhibits non-linear characteristics, As the level of agglomeration continues to exceed the threshold, the innovation-driven effect of digital transformation increases. The research results help clarify the relationship between digital transformation and innovation performance, and provide favorable policy directions for regional governments to identify digital divides and make reasonable industrial layouts. Thus, it can promote the construction of digital China and innovation power, injecting strong innovation force into the realization of SDGs.

How can pilot free trade zones affect regional technology innovation? –evidence from China at the city level

ABSTRACT This paper examines the impact of pilot Free Trade Zones (FTZs) on technology innovation in China. Applying a multi-phase difference in difference (DID) model with the data from 280 Chinese cities during 2004 – 2019, covering 18 pilot FTZs, we found significant positive technology innovation effects of pilot FTZs. Specifically, the establishment of pilot FTZs has encouraged ‘substantive innovation’ through improving business environment, producer services agglomeration and financial development. Further spatial analysis shows that the innovation effect of the pilot FTZs has a positive spillover effect on neighbouring cities whose innovation capabilities are improved significantly, and thus narrows the innovation gap between cities. In terms of time dimension, the positive effect of pilot FTZs on innovation is immediate and continuously amplified. The above conclusions are robust using the placebo test, PSM-DID and control of provincial effects. The results provide important implications in extending the pilot FTZs to a wider coverage.