The Research On Interactive Development Between Producer Service And Manufacturing Industry In Hunan Province

Industrialization is the prerequisite and basis for the modernization and an insurmountable stage of economic development and social progress of a country, and manufacturing industry is the foothold of industrialization. When the development of manufacturing industry goes into a certain stage, its value-added and the enhancement of competitiveness rely more on service industry. Producer service is the most dynamic and fastest-growing part of service industry, whose development is largely targeted for the manufacturing industry.With the development of new-type industrialization, the development of manufacturing industry is increasingly dependent on producer service. New-type industrialization is a process in which the interaction between producer service and manufacturing industry strengthens continuously. As for Hunan province, in order to take the road of new-type industrialization, it must rely on producer service to promote the development and upgrading of manufacturing industry. The promotion of the interactive development between producer service and manufacturing industry is the key way to achieve new industrialization in Hunan province.Based on the development of industrial economy in Hunan province, this article makes in-depth study on the interactive development between producer service and manufacturing industry in this area. Firstly, according to some theories about service outsourcing, this chapter discusses the mechanism of interactive development between producer service and manufacturing industry. The development of producer service contributes to promote its specialization and scale and accordingly improve the quality and reduce the cost of service, which thereby promotes the service externalization and the development and upgrading of manufacturing industry. And the development and upgrading of manufacturing industry in return will inevitably bring high market requirement and upgrading for producer service with larger number, more varieties and higher quality, thus contributing to the further development of producer service. Secondly, based on detailed statistical data, this article makes detailed analysis about the current situations of producer service and manufacturing industry from various aspects in Hunan province. The results show that: the development of producer service is in its fancy and lags behinds manufacturing, which restricts the interactive development between them. Thirdly, to investigate whether there has formed an interactive relationship between producer service and manufacturing in Hunan Province and if so, which stage it has been, based on the former theoretical analysis and under selected times series, a dynamic econometric analysis is made on producer service and comprehensive indices of manufacturing industry under the methods of co-integration test combined with Granger causality test and impulse response function and variance decomposition analysis based on VEC model. The results reveal that the manufacturing industry is a great driving force on producer service while the latter has not promoted the former greatly, and the interaction between them is in an embryonic stage. Finally, based on the analysis made above, this paper tries to put forward some policy recommendations to promote the interactive development of producer service and manufacturing industry in Hunan province.