Purpose/SignificanceExploring the quantitative impact of productive service agglomeration on manufacturing efficiency is of great significance to China's industrial restructuring and high-quality economic development.

Method/ProcessBased on the provincial panel data from 2003 to 2016, the paper describes the statistics of the agglomeration of productive service industries in 31 provinces(municipalities and autonomous regions) of China except Hong Kong, Macao and Taiwan, and analyzes producer service agglomeration effectson manufacturing production efficiencywith panel threshold model.

Result/ConclusionThe study findsout that the threshold effect of producer service agglomeration does exist on manufacturing production efficiency.When the agglomeration of productive service industry is low, the effect is significantly negative; but when it reaches a certain threshold value, the impact will be significantly positive.With the further increase of producer service agglomeration, positive impact will be further strengthened. In most provinces now, producer service is developing insufficiently.Only by vigorously developing producer service and forming a coordinated and balanced development between producer service industries and manufacturing industries can we achieve long-term and stable economic development.