Co-agglomeration of Manufacturing and Producer Services Industry and Pollution Emission

——A Panel Data Analysis of China’s 285 Cities

HUANG Juan1 and WANG Ming-jin2

（1.Collaborative Innovation Center for China Economy，Tianjin300071，China；2.Shaoxing Regional Center for Economic

Research，Shaoxing，Zhejiang312000，China）

Abstract：Based on the inverted U- shaped curve hypothesis of relation between agglomeration and pollution，the authors explore the effect of manufacturing agglomeration，co- agglomeration of manufacturing and producer services industry on pollution emission with a panel data of China’s 285 cities from 2004 to 2014． Then the authors make the empirical analysis with the two- way fixed effects using the divided sample based on regional characteristic and population size characteristic． The results imply that manufacturing agglomeration and co-agglomeration of manufacturing and producer services industry both have an inverted U- shaped relation with pollution emissions． With the development of agglomeration，agglomeration may have a negative effect on pollution emission after the level of city agglomeration steps over the "inflection point"． Innovation can significantly reduce pollution emissions， and plays an important role on the inverted U- shaped relationship between agglomeration and pollution emissions． After considering region and size factors，the effect of manufacturing agglomeration and co- agglomeration of manufacturing and producer services industry on pollution emissions has obvious characteristics about location，structure and scales．

Key words：manufacturing agglomeration；co- agglomeration；pollution emission；inverted U-shaped curve；fixed effects model