Spatial Econometric Analysis of Urban Service Industry Development in China—From the Perspective of Urban Scale Heterogeneity

Abstract

Different metropolitans have different structures of its service industry. They also have different population, traffic system, educational level, health facilities, etc. Considering heterogeneity of urban scale, we used spatial Econometric methods to carry out a comparative analysis on determinant factors for the development of service industry. Based on panel data for 208 urban of PR China for 2001-2012, the results show that service industry’s characteristics of spatial agglomeration are more significant in the big cities. Second industries boost up the service industry in big cities, while transport system tend to impact the service industry in small cities.