A Study On Producer Service Industry Promoting Economic Growth

Since 1980s, the service industry played an more and more important role in economic growth. There is a trend that industrial structure changed from "industrial economy" to "service economy". As the most important part in service industry, more and more people concern about the role producer service plays in promoting the development of economy.On the basis of producer service theory, this paper raised four hypothesis: producer service industry contribute to the improvement of manufacturing productivity,full employment and the process of urbanization. Then the paper analyze the development of producer service industry in Guangdong Province.In addition to theoretical analysis, this paper tested the hypothesis on the base of time-series data of Guangdong Province. We found that there were long term co-integration relationship between the producer service and the variables. Granger causality test results confirmed that producer service can promote the economic growth through the three paths and mechanism. Among all the paths, increasing productivity of manufacturing industry is the most important one.Finally, we analyzed the development of producer service in Guangdong province. In order to promote regional economic growth, we raised several suggestions on producer service industry.