The Research On Interaction Effect Of Knowledge Intensive Business Service (KIBS) And Manufacturing Industry In China

With the economy developing, economic pattern is changing from “industry economy” to“service economy”, the role of service is becoming more and more important in economy.Though, KIBS (Knowledge-Intensive-Business-Service), including consulting, communicationservice, finance,etc. develops late, It is playing a more important role in our country. In2010,ourcountry became the second economic entity, and the share of manufacturing had exceeded theAmerican’s. But manufacturing is facing many problems, like unreasonable developing patternand manufacturing structure. Considering these, government proposed “adjusting industrystructure and promoting industry upgrading”. Nowadays, industries’ production and operationare not isolated, but influence each other, industries’ cooperation will promote the industrialupgrading. And industries interaction must be one of the most important patterns in future. Thearticle analyzes industrial interaction effect between KIBS and manufacturing. First, discussinginteractive mechanisms based on The New Growth Theory，Division Theory and EcologicalCommunity. In the view of demanding and benefit，the author specifies factors which induceindustrial interaction. Then analyzing reciprocal demanding and the relevance of KIBS andmanufacturing by2007input-output table. Building simultaneous equations with the data from1995to2011of our country to demonstrate the interactive degree of KIBS and manufacturing.The analysis results show that KIBS and Manufacturing are interdependence and mutualpromotion. Compared with Manufacturing to KIBS,KIBS has more dependence onManufacturing,and KIBS has less promotion to Manufacturing. In the end, based on thereality and the result of regression analysis, author makes some suggestion for a betterdevelopment of KIBS and manufacturing.