Original scientific paper
https://doi.org/10.1080/1331677X.2019.1674178
Do extensive producer services promote manufacturing agglomeration? Evidence from territorial servitisation in Northeast China
Duo Liu
; School of Economics and Management, Northeast Normal University, Changchun, China
George S. Chen
; UNE Business School, University of New England, Armidale, Australia;
Dalin Zhi
; School of Finance, Changchun University of Finance and Economics, Changchun, China
Abstract
We examine the effect of territorial servitisation on the spatial development of the manufacturing sector in Northeast China. Using data from 34 prefectural cities from 2003 to 2016, we find that the concentration of producer services promotes manufacturing agglomeration in the region. The novelty of our paper lies in the external instruments used to control for circular causation in the service–manufacturing nexus and spatial spill-overs of territorial servitisation during estimations. Our results are independent of a series of robustness tests and suggest that a synchronised development of the service and manufacturing sectors enables the region to fully internalise territorial servitisation.
Keywords
Manufacturing; agglomeration; territorial servitisation; spatial spill-overs; China
Hrčak ID:
229709
URI
Publication date:
22.1.2019.
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