Spatial evolution of producer service sectors and its influencing factors in cities: A case study of Hangzhou, China

Abstract

Producer service industries are an important feature in the current development of a metropolis. Researchers from different countries are increasingly concerned about location changes and the motives of producer service sectors in cities. Given the rapid development of producer service sectors in developing countries, this study examines changes in the distribution of producer service sectors over the past decade and factors influencing them in a case study using the city of Hangzhou in China. Results show that Hangzhou's producer service sector is still mainly concentrated in the central business district (CBD). However, a distinct trend of diffusion to suburban areas was observed, which formed several secondary clusters on the periphery of the city. Locations of the CBD, sub-centers, and professional clusters of producer service sectors established by the government are the most important factors that affect the spatial distribution of producer service sectors. The main influencing factors for the spatial evolution of producer service sectors are: (1) the high development cost and residential suburbanization of the central areas of the city promote the development of producer service sectors toward the periphery; (2) city planning has guided the clustering of producer service sectors on the city's CBD and secondary city centers; (3) city renewal has provided personalized and diversified development space for producer service sectors; (4) incentive policies introduced by the government, such as rentals, and taxes have enhanced the orderly aggregation of producer service sectors.