Factor Price Distortions' Effect Research On The Growth Of Producer Services

Since China entered “the new normal”,economic downward pressure increasing,the disadvantages of traditional development mode emerging,GDP growth rate only around 7.5% between 2012 and 2014,in 2015,it dropped to 6.9%.At the same time,overcapacity situation is serious,so,promote industrial transformation and structure adjustment is very important.Producer services,as intermediate industry,linked with the manufacture industry,the professional development boost the economy development and save the transaction cost.Besides,producer services are often has the characteristics of high added value and high technology content.Most of existing research shows that factor prices obvious distortion.So,factor price distortions will have inhibitory effect on growth of producer services? If the answer is yes,how it affect the growth of the producer services? If there are time and regional differences of this inhibitory ability? There are the problems to be solved by this document.In this paper,we discuss the capital and labor factor price distortion effect on the growth of producer services: first,producer services is difficult to obtain elements.Second,non-government-owned enterprises are difficult to obtain elements and faced high prices.Third,elements can't flow freely,further distorted the factor price,hinder the growth of producer services.Then,this article uses the data between 2004 and2014 to measure the total price distortions,the capital price distortions and the labor price distortions.And carry on the empirical research from overall level,regional level,time level on the basis of this.According to the regression results of the empirical part,this paper draws the conclusions: Firstly,the factor price distortions have a bad influence on the growth of the producer services.Secondly,factor price distortions in the eastern region have the strongest inhibitory effect to the growth of producer services,followed by the central and western.Thirdly,the total price distortions and the labor price distortions have less impact on the growth of the producer services.Besides,the capital price distortions have more influence on the growth of the producer services.Finally,from the point of control variables,the urbanization,the manufacture,human capital,the traffic condition has a good influence on the growth of the producer services.