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Based on panel data related to the producer services industry in 27 provincial capital cities in China from 2004 to 2014, this paper first uses location entropy index method and DEA-Malmquist index method to measure the level of producer service industry agglomeration and total factor productivity. The research conclusions show that the accumulation of productive service industry has a significant role in promoting total factor productivity, which is mainly due to the effect of technological progress. At the same time, scientific and technological investment has a significant positive effect on the improvement of total factor productivity. Finally, based on the conclusions, this paper puts forward relevant countermeasures and suggestions on the accumulation of producer service industry to promote the growth of total factor productivity.

Empirical Research on Total Factor Productivity of Agglomeration of Producer Services Industry