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Modern service industry agglomeration and its influencing factors: spatial interaction in Chinese cities

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  • Xiaowen Wang
  • Yunsheng Zhang
  • Nanxu Chen

Abstract

From the perspective of spatial interaction, the impact of the modern service industry’s agglomeration on today’s increasingly connected cities is worth studying. This study uses a spatial econometric model to test the development trends and factors influencing the modern service industry’s agglomeration in the Yangtze River Delta city group. The results show that the industry has the highest agglomeration in leasing and business and the lowest in education. The overall concentration of the industry is generally low, implying a more fragmented distribution. Moreover, the agglomeration has a significant positive spatial correlation with economic development, knowledge intensity, and city size. However, it has a negative correlation with information technology level and transportation infrastructure, inconsistent with existing research. This study argues that the development of the information technology level and transportation infrastructure in a city could lead to the ‘virtual agglomeration’ of the modern service industry and gradual decentralisation in geographical distribution. This is a new paradox that city groups may face when improving their infrastructure and developing modern services. This study uses the spatial interaction perspective to propose policy recommendations for promoting the modern service industry’s agglomeration and coordinated regional development.

Suggested Citation

  • Xiaowen Wang & Yunsheng Zhang & Nanxu Chen, 2022. "Modern service industry agglomeration and its influencing factors: spatial interaction in Chinese cities," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 3880-3899, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:3880-3899
    DOI: 10.1080/1331677X.2021.2006733
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    Cited by:

    1. Min Wang & Huayu Li & Yung-ho Chiu & Kexin Deng & Menghua Deng, 2023. "Research on the Carbon Emission Reduction Potential of the Ports in the Yangtze River Delta of China," SAGE Open, , vol. 13(4), pages 21582440231, November.
    2. Senhua Huang & Wenzhong Ye & Feng Han, 2023. "Does the Digital Economy Promote Industrial Collaboration and Agglomeration? Evidence from 286 Cities in China," Sustainability, MDPI, vol. 15(19), pages 1-24, October.

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