Research On Producer Services And City Economic Sustainable Development

Being urbanization of the new characteristics, industrialization, informationizationand realizing the sustainable development of the urban economy are important tasksfor the development of Chinese economy and social, and they are the key problem toadjust the economic structure and change the mode of economic development. Alongwith the increasing of the urban economy and the continuous improvement of the cityfunction system, the service and coordination function will be gradually increased.Service industry, especially the high knowledge intensive, strong industry relationship,small occupied space and low resource consumption of the producer services in theurban economic status was significantly raised, and gradually substituted for themanufacturing industry to become the main driving force of the development of thecity.The world cities transformation usually experienced the transformation from theresource-based city or the regional city to the manufacturing city, then to aservice-oriented city. Producer services in different stages of the city developmentplay different roles, such as "lubricant","productivity" and "propeller". It is useful forthe promoting the upgrading of city industrial, perfecting the economic functions ofthe city, improving the city innovation ability, and realizing the sustainabledevelopment of economy. New York, London, Tokyo, Beijing and Shanghai and othercities rely on the producer services to achieving of the economic transformationsucceed and improving the ability of sustainable development of city economy.Producer services invest more knowledge, human capital and technology into theproduction process, and improve the quality of factor inputs, promoting the upgradingof the industrial transformation. Productive services through outputting the productiveservice, playing the effect about industry association and increasing the urbanemployment and income, avoids the "Industrial Hollowing" in big city because ofindustrial develope slowing. The increasing of the intermediate inputs in the producerservices, means material intermediate input is reducing, that not only can reduce theconsumption of resources, but also reduce the pollution emissions, and change thepast passive city ecological governance situation. This paper will combine the basicindustry characteristics of the producer services knowledge-intensive, industryassociation, and intermediate input, the urban of industrial transformation and upgrading, and the employment structure optimization and "dematerialization"process for researching, and analysis the economy influence mechanism that theproducer services to the economic sustainable development of the city.Being in the low-end value chain in long time, our country industry improve thelabor productivity effectively by increasing the organic composition of capital andlabor remuneration incentive measures, but it did not increase the profits. In thecenter city and mega polis that have a high degree of mercerization and good basiccondition, producer services is helpful for enhancing the efficiency of industrialproduction and the realization the jump in the value chain position, then form theorganic specialized division of labor system. And under the monopolistic competitionconditions, producer services will increase the enterprise operating costs, withoutincreasing the industrial labor productivity.Producer services are agglomering in the center city and large urban, and itpromotes the big cities become the new industrial center and advanced manufacturingindustry base, the small and medium-sized cities around large cities for organicsupporting. The producer services increase the overall employment of the otherrelated industry so as to realize the total employment expansion though the industryassociation effect. The process that the urban system gradually perfect is the processthat the labor and orderly are flowing, and the employment market structuralcontradiction solved. Due to the producer services in the high-end of the value chain,it brings the higher wage returns, higher income level of the other industry, andreducing the operation cost of the center city.Producer services development and the urban economic development level havea high correlation, and it is helpful to Beijing and Shanghai and other central cities torealize the production process of "dematerialization". Although each city has takensome certain measures to reduce the energy consumption per unit of GDP, due to therebound effect, the industrial waste gas and solid waste discharging amount is alsolarge, and shows ascendant trend. Under extensive economic development mode, thedemand that the manufacturing for producer services is not enough, so it makes urbaneconomy to get rid of the material resources which highly depend on difficultly. Areasonable environmental regulation is helpful for improving the level of theindustrial enterprise service outsourcing and specialization.The TFP of Chinese producer services grows rapidly, and the eastern regiongrows faster than the central and western regions, the development level of Beijingand Shanghai’s producer services is in a leading position in the country. Based on the urban industrialization level, developing the producer services in the city of ourcountry should be focus in optimizing industrial technical line, promoting themarketization reform, promote industrial cluster layout, accelerate industrialintegration development and implement industrial ecological regulation, etc., so thatto promote the development of producer services, and form the right city specializeddivision of labor system to ensure the sustainability of urban economy.