Spatial Effect of Industry Convergence on Total Factor Productivity: From the Perspective of the Convergence of Advanced Manufacturing Industry and Modern Service Industry

To evaluate the impact of industry convergence on total factor productivity, the paper constructs an index system for the convergence of advanced manufacturing industry and modern service industry, and measures the level of industry convergence. In addition, it calculates total factor productivity with stochastic frontier method, and studies the impact of the level of industry convergence on total factor productivity with semi-parametric spatial lag model. The results show that the level of industry convergence in China is on the rise as a whole, but the development gap between regions is gradually widening, and the development of industry convergence is still unbalanced. In addition, total factor productivity first declines and then increases. Individually, the scale efficiency is steadily rising, but the effect of technological progress is relatively weak. There is a significant spatial effect of the level of industry convergence on total factor productivity. The total factor productivity of a region is affected by its surrounding areas, which carries the characteristic of nonlinearity. When the level of industry convergence is lower than 0.360, it has a restraining effect on the total factor productivity. When the level of industry convergence is higher than 0.360, it has a facilitating effect and the number of areas falling into the facilitating effect zone is gradually increasing.