Abstract: Based on the theory of urbanization and industrial economic theory, this paper studies the relationship between urbanization and spatial distribution of service industry by using Chinese provincial panel data from 2008 to 2017. The results show that the urbanization and the spatial distribution of producer services has a U-shaped relationship,whose inflection point of urbanization is 68.4%; urbanization and consumer services spatial distribution presents linear positive correlation, and public services presents an inverted U-shaped relationship, whose turning point in the urbanization rate is 48%, and producer services agglomeration level are significantly higher than that of consumer services with the process of the urbanization. Overall, the urbanization and spatial distribution of service industry has certain linear positive correlation, and service industry has a certain trend of agglomeration, which confirm the service industry structure to give priority to the modern service industry structure evolution law of producer services. Combining with the spatial distribution of service industry trend, we need to reasonably guide the orderly agglomeration and decentralization of various service industries in space on the basis of urbanization.

Key words: urbanization, producer services, consumer services, public services, spatial distribution