Abstract proposal for 2019 IGU Urban Commission Meeting Luxembourg - 4th -9th August 2019

Abstract proposal for 2019 IGU Urban Commission Meeting Luxembourg – 4th- 9th August 2019

2019 IGU Urban Commission Annual Meeting Urban Challenges in a complex World The urban geographies of the new economy, services industries and financial market places

AUTHORS: Jin Li

Paper Title: Research on the regularities of distribution of urban productive public service industries: the case of city

Session: Services industries and financial market places

Extended abstract

• Theoretical background

Urban productive public service industries, including finance, insurance, law, banking, accounting, information and intermediary related industries, are knowledge intensive and specialized customer service industries (Browning, 1975, Howells, 1986). The corresponding types of land use are mainly dominated by trade offices and mixed commercial and office buildings. The distribution of urban productive public service industries in the city is not only related to their own development and the impact of market factors, but also needs to coordinate with other industries and urban functions, in order to be in line with the overall spatial development rules of urban. With the development of economic globalization and the growing depth and breadth of international division of labor among countries, urban productive public service industries are more and more important. What is more, their spatial distribution influences the whole urban structure which makes them one of the significant urban spatial distribution components. From the perspective of self-development of urban productive public service industries, there is a trend of "internalization" or "de-marketization" to "externalization" or "marketization". Its production is based on the deepening of division of labor of cost advantages, and the development of outsourcing activities. With the development of economy, the promotion of marketization and the reduction of market transaction costs, independent market players specialized in providing services such as accounting, marketing, consulting and logistics are emerging in the economic system. The development of externalization, marketization and industrialization of productive public service is the natural extension of specialized division of labor and allocation of resources from the internal enterprise to the internal market. Therefore, the development of productive public service is not only a reflection of the breadth and depth of its own industries, but also relates to the level of development of other industries that serve as its targets. By summarizing the current spatial distribution pattern of industries land for productive service industry, this research will provide support for the planning and layout of land for

1 Abstract proposal for 2019 IGU Urban Commission Meeting Luxembourg - 4th -9th August 2019 productive industries in urban areas in the future, and provide reference and basis for quantitative study of urban spatial distribution.

• Research questions

What is the regularities of distribution of urban productive public service industries and the forming reason of it.

• Methodology

This study takes Nanjing city as the research object (including Xuanwu , Gulou District, , , , , , and Liuhe District). Judging from the distribution of service land in the whole city of Nanjing, the land use of all types of public service industries is decreasing from the urban center to the marginal areas. Among them, the type of land for productive service industries is mainly trade and commercial mixed-use land, with an area of 285.0 hectares, a total construction area of 1,852.80 hectares, an average building density of 0.325, and an average floor area ratio(FAR) of 2.346.

To study the coupling relationship between land prices in Nanjing and industries used for productive service industries the benchmark land price of commercial land in Nanjing was selected, and a total of 22 benchmark land price grades for commercial land were used. (Land price information source: Nanjing Municipal Bureau of Land Resources). According to the Nanjing commercial benchmark land price information, the distribution situation map was formed using ArcGIS fitting. The city’s commercial land price is distributed into two district structures, and the overall trend is circular and progressively decreasing. The highest price of the commercial benchmark land price is distributed along the Zhongyang Road- Zhongshan Road. Three peak points are formed and form the north-south axis structure, and these three points are Zhongyang Gate Area, Hunan Road Area and Xinjiekou Area. Secondary land prices are distributed in the form of fingers, with the old city of Nanjing as the center, and extending to Yanziji, the direction of Youfang Bridge on the 2nd subway line, the direction of Nanjing-Hangzhou Expressway, the direction of the airport expressway and Yuantong Station on the 2nd subway line. The distribution of land prices is influenced by the River as a main and sub-space structure across the Yangtze River, and the relatively high land price centers in Pukou District and Liuhe District have basically taken shape.

Based on the circle layer method, this study analyzes the relationship and the law between the floor area ratio of the land use for urban productive public service industries and the commercial benchmark land price, through spatial autocorrelation, significant test and correlation analysis. Specific steps are as follows:

1. Determine the city center. The central area of Nanjing Xinjiekou Area is located in the geometric center of Nanjing city, where east-west and south-north city main roads meet. Meanwhile, from the aspect of urban function, Xinjieko Area is also the center of commercial, business, culture and entertainment etc. Among them, Xinjiekou Square is located at the intersection of four central roads in the central part of Xinjiekou, east to Zhongshan East Road (to Zhongshan Gate), south to Zhongshan South Road (to Zhonghua

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Gate), west to Hanzhong Road (to Hanzhong Gate), and north to Zhongshan Road, leading to Gulou Square. Therefore, Xinjiekou Square is chosen as the center of this study. 2. Calculate building density and floor area ratio based on different land properties. According to the site investigation and data entry, the building density and the floor area ratio of each block of different land use types were calculated, and the productive public service industries are selected to obtain the spatial distribution pattern. 3. Calculate in circles. Taking Nanjing Xinjiekou Square as the center, with the radius of li = 1 + 1 ( i – 1 ), (i=1,2,...,19, unit:km ), the Nanjing urban area is divided into 19 circles. The distance Ri from each circle to the city center is calculated as follows: Ri = l ( i – 1 ) + ( li – l ( i – 1 ) ) / 2 , ( i = 1 , 2 , … , 19 ). Due to the reason of data volume, layers 7 to 8, 9 to 10, 11 to 13, 14 to 16 and 17 to 19 are combined to form a new secondary layer. There are a total of 11 secondary circle layers, of which the focus is on layers 1 to 9 in the secondary circle layer. 4. Model fitting. Applying the above model and linear model respectively, a fitting analysis of the building density of public service industries, floor area ratios, and the layout of commercial benchmark land prices in Nanjing was performed, and calculations are made. Correlation rules are then found.

Distribution of commercial benchmark land price in each circle of Nanjing • Results/findings

Using the mathematical statistical analysis method, the Pearson correlation coefficient of the plot ratio of the land for productive public service industries in Nanjing and the commercial benchmark land price was calculated to be 0.330, corresponding to a p value of 0<0.05, indicating the distribution density of productive public service industries in the main city area of Nanjing remarkably related to benchmark land price. The coupling relationship between the floor area ratio of the land for productive public service industries and the commercial benchmark land price in each circle is significantly different.

The above results are summarized to obtain a circle map of the coupling ratio of the floor area ratio of the land for productive public service industries to the commercial benchmark land price. Among them, the floor area ratio of land for productive public service industries in the first circle (0-1000m) is weakly related to the commercial benchmark land price, and

3 Abstract proposal for 2019 IGU Urban Commission Meeting Luxembourg - 4th -9th August 2019 there is no significant correlation in the second circle (1000-2000m). The third circle (2000- 3000m) and the fourth circle (3000-4000m) showed strong correlation and weak correlation in turn. In the fifth and other layers (>4000m), there was no significant correlation, except for the the seventh circle(6000-8000m) with a strong correlation.

Corresponding to the core structure of the urban center zone, the floor area ratio of the land for productive public service industries and the commercial benchmark land price are significantly weak correlation in the core circle and the shadow circle in the core structure of the central zone. In the subnuclear circle and the auxiliary circle, there is no significant correlation in the layers. There was a significant correlation in the area among , the Confucius Temple, the Ming Palace, and Gulou District. There was a significant correlation in the area among Yuhua District Software Park and the Olympic Sports Center, south part of Hexi District.

Considering the average value, median value, and normal distribution of the benchmark price of commercial land and floor area ratio of the land for productive public service industries in the city, we define the commercial benchmark land price of more than 20,000 Yuan/ m2 as the high land price region, and the floor area ratio below 2.6 is defined as low floor area ratio area. We noticed that for the lands with the high benchmark price and low floor area ratio, the radio of their distribution in the second, fifth, and sixth circle layers are distinctly higher than other circles, that is, the proportion of distribution in the circle with no significant correlation between the floor area ratio of the land for productive public service industries and the commercial benchmark land price is relatively high.

From the perspective of self-development of urban productive public service facilities, there is a trend of "internalization" or "de-marketization" to "externalization" or "marketization". Its production is based on the deepening of division of labor of cost advantages, and the development of outsourcing activities. With the development of economy, the promotion of marketization and the reduction of market transaction costs, independent market players specialized in providing services such as accounting, marketing, consulting and logistics are emerging in the economic system. The development of externalization, marketization and industrialization of productive public service is the natural extension of specialized division of labor and allocation of resources from the internal enterprise to the internal market. Therefore, the development of productive public service is not only a reflection of the breadth and depth of its own industries, but also relates to the level of development of other industries that serve as its targets.

With the acceleration of economic globalization and the rapid development of information technology, economic activities have shifted from manufacturing as a center to service as the center. The relationship between the service industry, especially productive public service such as the financial services, logistics, information and so on, and the manufacturing industry, is increasingly becoming more and more close, and show the trend of interactive development. There is a positive correlation between the investment in productive public service and the improvement in the efficiency of manufacturing. The service-oriented manufacturing industry has a positive effect on improving the level of manufacturing efficiency.

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From the aspect of spatial distribution of urban productive public service industries, the spatial distribution of the types of land use they refer to needs not only consider the characteristics of the industries own development and market, but also meet the overall urban space rules. As previous studies have found, although the development of urban productive public service industries is closely linked with manufacturing industry, the spatial distribution of the two has significant differences. The concrete manifestation is that although both show significant spatial agglomeration, there is a clear difference in the spatial pattern of agglomeration and decentralization, the spatial distribution of the two has spatial reparability.

The study found out that the spatial distribution of urban productive public service industries in Nanjing are mainly concentrated in Xinjiekou Area, Zhujiang Road, Hunan Road, Hexi Business Districts and Yuhua District Science Park, only a few scattered in other locations. As mentioned earlier, from the relationship between urban productive public service industries construction volume and benchmark land price, there is a correlation between the floor area ratio of urban productive public service industries and the overall distribution of benchmark price of commercial land prices, and the correlation strength different in different circle. Among lots of such urban productive public service industries concentrated area, the floor area ratio of urban productive public service industries land use shows high correlation with the commercial land price.

In none correlation circles, where have high land price but with low floor area ratio, can be divided into two types to discuss. The first kind is the shadow area in the downtown area. The floor area ratio of each block are lower than the average floor area ratio in the central area. It is characterized by a sharp decline in density and intensity of public industries, poor service condition, old and fragmented architectural forms with dispersed locations, and the stark contrast to the public industries in neighboring hard core blocks. One of the reasons for the formation of shadow areas is that such shadow areas are located in the center of the city near the hard core area and therefore have an expensive land price but have low

The distribution of productive public The distribution of productive public service service facilities area with high land facilities area with high land price and low FAR in price and low FAR in different circles different circles

5 Abstract proposal for 2019 IGU Urban Commission Meeting Luxembourg - 4th -9th August 2019 accessibility because of various reasons, that is why it is difficult to be developed and the amount of construction and quality of architectural form can only be maintained in the state of many years ago. It is consistent with the result that the spatial distribution of high land price with low floor area ratio of urban productive public service industries. The second kind is the undeveloped fringe and periphery of the city. Due to the leaping development and construction of the city, the degree of construction and development in the non-central zone is not yet fully developed. Some of these areas are under development, and therefore, floor area ratio and land prices are in change. However, it can be seen that there is a strong correlation between those two features within developed areas.

• Significant/general conclusions

The land for productive public service industries are mainly including the land for finance and insurance, land for trade and information, and related mixed-use land. This study starts with the analysis of the correlation between the land for productive public service industries and benchmark price of commercial land, and uses the circle method to study the characteristics in different spatial distribution. Through the analysis of the circle layer method and the degree of aggregation, the floor area ratio of the land for productive service industry use has a significant correlation with the commercial benchmark land price, and the correlation in each circle is different. In the circle where there is no significant correlation between the floor area ratio of the land for productive public service industries and the commercial benchmark land price, there is a feature of high land price and low volume rate.

Under the background of the new industrialization, the issue of the transformation and upgrading of industry structure needs to pay more attention to the role of the industry of productive public service. Its rational layout in space can not only promote the development of the industry of productive public service, but also contribute to the whole service industry, and this will be more conducive to the optimization and upgrading of the service industry and the overall industrial structure.

The study of urban productive public service industries in this research involves the study of the correlation between the floor area ratio and the corresponding commercial land prices and the quantitative study of its spatial distribution regular pattern. The analysis and explanation of the relations between urban spatial distribution characteristics and land market can provide a basic support platform for the problems that appeared when locating urban productive public service industries and optimization of spatial forms during rapid urbanization, and we hope that these results provide a convincing theoretical guidance for guiding site selection of urban productive public service industries.

References Mills, Edwin S., 1972, Studies in the Spatial Structure of the Urban Economy, Baltimore, MD: Johns Hopkins University Press Brueckner, Jan K., 1979, A model of non-central production in a monocentric city, Journal of Urban Economics, Vol. 6, pp. 444463. Adams L W. Urban wildlife habitats – a landscape perspective[M]. Minneapolis, MN: University of Minnesota Press, 1994.

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Cunha, P. F., Duarte, J. A. C., & Alting, L. (2004). Development of a productive service module based on a life cycle perspective of maintenance issues. CIRP Annals - Manufacturing Technology, 53(1), 13–16. Tan Xue-lan X. A GIS based analysis of influencing factors of spatial distribution of rural settlements. 2010 2nd International Conference on Information Science and Engineering.: IEEE; 2010-12:3416-3419.

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