Abstract: Based on the measurement of producer service industry agglomeration and export technological complexity of manufactured products in 288 Chinese cities from 2000 to 2015, this paper illustrates the evolvement and spatial characteristics of the two factors through visualization figures, and discusses the effects of producer services agglomeration on export technological complexity of manufacturing through robust panel data models. The findings are as follows: as with the influence of industrial connection, empirical outcomes indicate that urban producer service agglomeration can promote technological complexity of export manufacturing on the full-sample level. Visualization analysis shows that the scale of producer service industry agglomeration and the export technological complexity of manufactured products around Chinese cities kept rising constantly during the study period. However, although the export technological complexity displayed a trickle-down effect, the producer service industry agglomeration experienced continuous polarization both on the national and the regional levels. Accordingly, as is shown in the empirical analysis by areas, regions with strong support from producer service industry saw a remarkable promotion in the export manufacturing technology, while the northwest and the northeast gradually lagged behind. Such results sufficiently prove that heterogeneity does exist in the performances of industrial connection between producer service industry and export manufacturing in cities of different regions in China.

Authors: Xinyu Gao, Chengpeng Lu and Jinhuang Mao