Effect of Agglomeration of Producer Services on Asynchronous Development of Industrialization and Urbanization: Provincial Panel Data of China
Publication: Journal of Urban Planning and Development
Volume 150, Issue 2
Abstract
Industrialization and urbanization are significant facets of modernization. The asynchronous development of the two is closely related to the agglomeration of producer services. This paper constructed an asynchrony index to describe the development gap between industrialization and urbanization. Various spatial weight matrices were introduced to test the spatial autocorrelation of the asynchrony index. Applying spatial econometric models, we explored the impact of agglomeration of producer services on the asynchrony index from two aspects: diversified agglomeration (DA) and specialized agglomeration (SA). The following conclusions are drawn from the empirical findings, which are based on data from 31 Chinese provinces between 2008 and 2019: (1) the asynchrony of industrialization and urbanization exhibits the spatial autocorrelation increasing over time; (2) SA exacerbates the asynchrony, while DA alleviates the asynchrony; (3) SA exerts greater impacts in highly industrialized and urbanized regions, while DA exerts greater effects in lowly industrialized and urbanized regions; and (4) agricultural dependence and infrastructure level weaken the impacts of SA and strengthen the impacts of DA. Income level weakens the impacts of both SA and DA. The results of this study provide a reference for policymakers to adjust the industrial layout in a targeted manner to regulate the asynchronous nature of modernization development.
Practical Applications
Peace and development are the themes of the world today. Most developing countries are experiencing or about to experience industrialization and urbanization. The world reality indicates that the two are not always synchronized in countries due to resource and cultural differences. Producer services not only improve agricultural and industrial production efficiency but also bring population agglomeration effects like other industries. In the era of informatization, the producer services exert a profound impact on industrialization and urbanization through two agglomeration modes. This technical paper quantifies the asynchrony between industrialization and urbanization using data from 31 provinces in China and verifies the opposite effects of two agglomeration modes on asynchrony. In cities with different levels of industrialization and urbanization, cities with higher or lower agricultural dependence, and cities with higher or lower infrastructure levels, the impact direction of the two agglomeration modes shows stability, while the magnitude varies. Cities with higher per capita income tend to develop into consumer cities, where industrialization should lag behind urbanization.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
Acknowledgments
The authors thank two anonymous reviewers for their helpful comments and suggestions, leading to an improved version of this paper.
Notation
The following symbols are used in this paper:
- P
- significance;
- Wd
- spatial geographic matrix;
- We
- spatial economic matrix;
- Wg
- economic geography matrix;
- Z
- multiple of the standard deviation;
- ɛ
- random error term;
- μ
- spatial-fixed effect;
- ν
- time-fixed effect;
- ρ, θ, δ, λ
- regression coefficients of the variables; and
- ϕ
- spatial autoregressive error term.
References
Atack, J., R. A. Margo, and P. W. Rhode. 2022. “Industrialization and urbanization in nineteenth century America.” Reg. Sci. Urban Econ. 94: 103678. https://doi.org/10.1016/j.regsciurbeco.2021.103678.
Champion, T. 2001. Handbook of urban studies. London: Sage.
Chen, L. T., H. W. Zhang, and H. B. Xiong. 2013. “Can the agglomeration of service industry promote the process of urbanization? An analysis based on China’s provincial panel data.” [In Chinese.] Northwest. Popul. J. 34 (2): 55–59+65.
Chen, Q. 2014. Advanced econometrics and its Stata application. 2nd ed. Beijing: Higher Education Press.
Chen, Y. H., and Y. J. Sun. 2023. “The paradox of urbanization: A study on the retrograde phenomenon of structural urbanization and scale urbanization.” [In Chinese.] Stud. Socialism Chin. Characteristics 2: 34–43.
Chenery, H. B., and M. Syrquin. 1975. Patterns of development, 1950‒1970. London: Oxford University Press for the World Bank.
Cheng, Z. 2021. “Education and consumption: Evidence from migrants in Chinese cities.” J. Bus. Res. 127: 206–215. https://doi.org/10.1016/j.jbusres.2021.01.018.
Cheng, Z. H., L. S. Li, and J. Liu. 2017. “Spatial spillover effect of agglomeration of productive service industry on industrial efficiency improvement.” [In Chinese.] Stud. Sci. 35 (3): 364–371+378.
Du, M., and Y.-J. Zhang. 2023. “The impact of producer services agglomeration on green economic development: Evidence from 278 Chinese cities.” Energy Econ. 124: 106769. https://doi.org/10.1016/j.eneco.2023.106769.
Elhorst, J. P. 2010. “Applied spatial econometrics: Raising the bar.” Spatial Econ. Anal. 5 (1): 9–28. https://doi.org/10.1080/17421770903541772.
Ellison, G., E. L. Glaeser, and W. R. Kerr. 2010. “What causes industry agglomeration? Evidence from coagglomeration patterns.” Am. Econ. Rev. 100 (3): 1195–1213. https://doi.org/10.1257/aer.100.3.1195.
Ezcurra, R., P. Pascual, and M. Rapu. 2006. “Regional specialization in the European Union.” Reg. Stud. 40: 601–616. https://doi.org/10.1080/00343400600868754.
Feng, Y., X. Wang, W. Du, H. Wu, and J. Wang. 2019. “Effects of environmental regulation and FDI on urban innovation in China: A spatial Durbin econometric analysis.” J. Cleaner Prod. 235: 210–224. https://doi.org/10.1016/j.jclepro.2019.06.184.
Glaeser, E. L., and J. D. Gottlieb. 2006. “Urban resurgence and the consumer city.” Urban Stud. 43 (2109): 1275–1299. https://doi.org/10.1080/00420980600775683.
Glaeser, E. L., J. Kolko, and A. Saiz. 2001. “Consumer city.” J. Econ. Geogr. 1 (1): 27–50. https://doi.org/10.1093/jeg/1.1.27.
Gollin, D., R. Jedwab, and D. Vollrath. 2016. “Urbanization with and without industrialization.” J. Econ. Growth 21: 35–70. https://doi.org/10.1007/s10887-015-9121-4.
Han, F., P. Feng, and L. G. Yang. 2014a. “Spatial agglomeration effects of China’s cities and industrial energy efficiency.” [In Chinese.] China Popul. Resour. Environ. 24: 72–79.
Han, F., L. Y. Hong, and Y. Wen. 2014b. “Has the agglomeration of producer services industries promoted urbanization.” [In Chinese.] J. Quant. Technol. Econ. 12: 3–21.
Han, F., and R. Xie. 2017. “Does the agglomeration of producer services reduce carbon emissions?—Spatial econometric analysis of panel data of cities at the prefecture level and above in China.” J. Quant. Technol. Econ. 34 (3): 40–58.
Han, F., R. Xie, and J. Fang. 2018. “Urban agglomeration economies and industrial energy efficiency.” Energy 162: 45–59. https://doi.org/10.1016/j.energy.2018.07.163.
Han, J. 2020. “Can urban sprawl be the cause of environmental deterioration? Based on the provincial panel data in China.” Environ. Res. 189: 109954. https://doi.org/10.1016/j.envres.2020.109954.
Han, J., J. Miao, G. Du, D. Yan, and Z. Miao. 2021. “Can market-oriented reform inhibit carbon dioxide emissions in China? A new perspective from factor market distortion.” Sustainable Prod. Consumption 27: 1498–1513. https://doi.org/10.1016/j.spc.2021.03.020.
Han, T. Y., and N. Li. 2017. “The influence of producer services agglomeration on manufacturing upgrading in Hebei province.” [In Chinese.] J. Hebei Univ. Econ. Busin. 38 (5): 83–88.
Hua, C., J. Miao, W. Liu, G. Du, and X. Wang. 2021. “The impact mechanism of industrial agglomeration on energy efficiency—Evidence from producer service industry in China.” Energy Sources Part B 16 (8): 740–758. https://doi.org/10.1080/15567249.2021.1966132.
Ivan, R., and R. Anthony. 2012. “Understanding China's demand for resource imports.” China Econ. Rev. 23 (3): 566–579. https://doi.org/10.1016/j.chieco.2011.05.004.
Jacobs, J. 1969. The economy of cities. New York: Vintage Books.
Jiang, Q., and Y. Z. Wang. 2015. “Agglomeration of productive services and manufacturing competitiveness.” [In Chinese.] J. Cap. Univ. Econ. Busin. 12: 74–80.
Jin, Z., Z. Li, and M. Yang. 2022. “Producer services development and manufacturing carbon intensity: Evidence from an international perspective.” Energy Policy 170: 113253. https://doi.org/10.1016/j.enpol.2022.113253.
Kahouli, B., K. Miled, and Z. Aloui. 2022. “Do energy consumption, urbanization, and industrialization play a role in environmental degradation in the case of Saudi Arabia?” Energy Strategy Rev. 40: 100814. https://doi.org/10.1016/j.esr.2022.100814.
LeSage, J., and R. K. Pace. 2009. Introduction to spatial econometrics. New York: Chapman and Hall/CRC.
Li, H., J. Chen, Z. Chen, and J. Xu. 2022. “Urban population distribution in China: Evidence from internet population.” China Econ. Rev. 74: 101808. https://doi.org/10.1016/j.chieco.2022.101808.
Li, J., S. Luan, B. Jiang, and Y. Gong. 2023. “Industrialization process evaluation of marine economy in China.” Ocean Coastal Manage. 231: 106416. https://doi.org/10.1016/j.ocecoaman.2022.106416.
Li, L., Y. X. Tian, G. X. Zhang, and H. L. Zhang. 2015. “Spatial weight matrix construction and economic space gravitational effect analysis——An empirical test in the background of the European debt crisis.” [In Chinese.] Syst. Eng. Theory Pract. 8: 1918–1927.
Li, X. H. 2015. “Research on the coordination of urbanization and industrialization in China: Based on the perspective of international comparison.” [In Chinese.] J. Univ. Chin. Acad. Soc. Sci. 1: 40–50.
Lin, G. P., Z. H. Long, and M. Wu. 2005. “A spatial econometric empirical analysis of regional economic convergence in China: 1978‒2002.” [In Chinese.] China Econ. Q. 4: 67–82.
Liu, H. M. 2005. Selection of leading industries suitable for regional agricultural ecological economy. [In Chinese.] Beijing: Chinese Academy of Agricultural Sciences.
Liu, J., Z. Cheng, and H. Zhang. 2017a. “Does industrial agglomeration promote the increase of energy efficiency in China?” J. Cleaner Prod. 164: 30–37. https://doi.org/10.1016/j.jclepro.2017.06.179.
Liu, X., X. Zhang, and W. Sun. 2022. “Does the agglomeration of urban producer services promote carbon efficiency of manufacturing industry?” Land Use Policy 120: 106264. https://doi.org/10.1016/j.landusepol.2022.106264.
Liu, Y., J. C. Xia, and Y. Li. 2017b. “Agglomeration of productive service industry and manufacturing industry upgrade.” [In Chinese.] Chin. Indus. Econ. 7: 24–42.
Liu, Y. L., Y. J. Wang, and M. L. Liao. 2020. “Study on the spatial correlation between industrial agglomeration and energy efficiency: An empirical study based on inter-provincial dynamic spatial panel data.” City 10: 36–48.
Looney, R. E. 1991. “Diversification in a small oil exporting economy.” Resour. Policy 17 (1): 31–41. https://doi.org/10.1016/0301-4207(91)90024-P.
Marshall, A. 1890. Principles of economics. London: Macmillan.
Moran, P. A. P. 1948. “The interpretation of statistical maps.” J. R. Stat. Soc. 37: 243–251.
NBS (National Bureau of Statistics of China). 2022. Accessed July 23, 2022. http://www.stats.gov.cn/.
Sikder, M., C. Wang, X. Yao, X. Huai, L. Wu, F. KwameYeboah, J. Wood, Y. Zhao, and X. Dou. 2022. “The integrated impact of GDP growth, industrialization, energy use, and urbanization on CO2 emissions in developing countries: Evidence from the panel ARDL approach.” Sci. Total Environ. 837: 155795. https://doi.org/10.1016/j.scitotenv.2022.155795.
Tobler, W. 2004. “On the first law of geography: A reply.” Ann. Assoc. Am. Geogr. 94 (2): 304–310. https://doi.org/10.1111/j.1467-8306.2004.09402009.x.
Wang, Z. P. 2017. “The marketing enlightenment of shared bicycles.” China Market 16: 126–127.
Wei, H. K., J. Li, and M. Nian. 2020. “China’s urbanization strategy and policy during the ‘14th Five-Year Plan’ period.” [In Chinese.] J. Party Sch. Cent. Comm. C.P.C. (National School of Administration) 24 (4): 5–21.
Wei, J. J. 2021. “Simultaneously helping rural revitalization with the four modernizations.” [In Chinese.] Fortune Today 11: 19–20.
Xi, Q. M., X. Chen, and G. P. Li. 2015. “Research on the model selection of productive services in Chinese cities-guided by the improvement of industrial efficiency.” [In Chinese.] Chin. Ind. Econ. 2: 18–30.
Xiao, T. 2019. Research on inter industry employment transfer and change trend in China. [In Chinese.] Huangshi, China: Hubei Normal Univ.
Xu, H., W. Liu, and D. Zhang. 2023. “Exploring the role of co-agglomeration of manufacturing and producer services on carbon productivity: An empirical study of 282 cities in China.” J. Cleaner Prod. 399: 136674. https://doi.org/10.1016/j.jclepro.2023.136674.
Yang, F. F., A. G. O. Yeh, and J. Wang. 2018. “Regional effects of producer services on manufacturing productivity in China.” Appl. Geogr. 97: 263–274. https://doi.org/10.1016/j.apgeog.2018.04.014.
Yang, R. F. 2013. “Industrial agglomeration and regional wage gap: An empirical study based on 269 cities in China.” [In Chinese.] Manage. World 4 (8): 41–52.
Yin, F., and Y. Z. Li. 2023. “Analysis of the growth mechanism of international consumer center cities under the background of regional integration—From the perspective of agglomeration and diffusion.” [In Chinese.] J. Commer. Econ. 12: 39–42.
You, H., J. Yang, B. Xue, X. Xiao, J. Xia, C. Jin, and X. Li. 2021. “Spatial evolution of population change in Northeast China during 1992–2018.” Sci. Total Environ. 776: 146023. https://doi.org/10.1016/j.scitotenv.2021.146023.
Yu, B. B. 2016. “The economic growth effect of China’s urban productive service industry agglomeration mode selection: A spatial Durbin model analysis based on the heterogeneity of industry, region, and urban scale.” [In Chinese.] Econ. Theor. Bus. Manage. 1: 98–112.
Yuan, F., J. Gao, L. Wang, and Y. Cai. 2017. “Co-location of manufacturing and producer services in Nanjing, China.” Cities 63: 81–91. https://doi.org/10.1016/j.cities.2016.12.021.
Zeng, X. Y., L. T. Lv, and F. Y. He. 2015. “Research on the relationship between cross industry labor mobility and wage rise—A test of micro data on industrial upgrading during China’s transition period.” China Price 9: 13–14+18.
Zhan, H. Y., J. L. Feng, and Z. H. Yuan. 2017. “Selection of agglomeration models for urban productive services in China: A study based on the classification of internal structure of manufacturing industry.” Macroecon. 10: 92–107.
Zhang, J. X., and L. F. Duan. 2009. “Measurement of the relationship between urbanization and industrialization in China.” Ecol. Econ. 12: 67–70.
Zhang, J. X., W. C. Liu, and W. Y. Zuo. 2023a. “Research on the choice of producer services agglomeration mode in the Beijing‒Tianjin‒Hebei urban agglomeration-based on the neoclassical marginal analysis.” Technol. Ind. 1: 175–182.
Zhang, Z., M. Zhao, Y. Zhang, and Y. Feng. 2023b. “How does urbanization affect public health? New evidence from 175 countries worldwide.” Front. Public Health 10: 1096964. https://doi.org/10.3389/fpubh.2022.1096964.
Zhao, J., X. Dong, and K. Dong. 2021a. “How does producer services’ agglomeration promote carbon reduction? The case of China.” Econ. Modell. 104: 105624. https://doi.org/10.1016/j.econmod.2021.105624.
Zhao, J., X. Dong, and K. Dong. 2021b. “Can agglomeration of producer services reduce urban–rural income inequality? The case of China.” Aust. Econ. Pap. 60: 736–762. https://doi.org/10.1111/1467-8454.12229.
Zhao, J., Q. Jiang, X. Dong, K. Dong, and H. Jiang. 2022. “How does industrial structure adjustment reduce CO2 emissions? Spatial and mediation effects analysis for China.” Energy Econ. 105: 105704. https://doi.org/10.1016/j.eneco.2021.105704.
Zheng, L. F., C. Zheng, and G. M. Andrea. 2022. “High-speed rail, market access, and the rise of consumer cities: Evidence from China.” Transp. Res. Part A Policy Pract. 165: 454–470. https://doi.org/10.1016/j.tra.2022.08.012.
Information & Authors
Information
Published In
Journal of Urban Planning and Development
Volume 150 • Issue 2 • June 2024
Copyright
© 2024 American Society of Civil Engineers.
History
Received: Nov 11, 2022
Accepted: Dec 29, 2023
Published online: Mar 5, 2024
Published in print: Jun 1, 2024
Discussion open until: Aug 5, 2024
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.