Effects of producer service industry co-agglomeration and manufacturing on the green and high-end transformation of manufacturing: An empirical study from Hunan Province

In the context of the "dual carbon goals" and intensified international manufacturing competition, the green and high-end transformation of manufacturing is the direction for the industry's future growth in China. The study discusses the effect of producer service industry co-agglomeration and manufacturing on the transformation of manufacturing into being green and high-end. Firstly, we systematically elaborate on the mechanism of the collaborative promotion of high-end manufacturing by the service and manufacturing industries and propose research hypotheses. Based on the 2010 to 2020 Hunan Provincial Statistical Yearbook data, we used the coupling coordination model and entropy method to calculate the level of collaborative development between the manufacturing and service industry, as well as the level of green high-end development in the manufacturing industry. Lastly, the specific impact of the synergistic effect of the two industries on the green high-end transformation of the manufacturing industry was analyzed using the dynamic panel regression model. Results found that service industry manufacturing synergy has a noteworthy positive driving effect on the green and high-end transformation of manufacturing. However, the impact varies across different service industries and manufacturing sectors with different technological levels. We also provide some implications for improving transformation efficiency in the green and high-end manufacturing industry.