The Theoretic And Empirical Research Of Producer Services In Cities

Producer services are taking more and more important role in national economy, and have become the main driving force in the development of economy. According to the studies abroad, producer services are the branches that the value added and employment increase most fast, and they already become the focus of foreign investment in most of economic systems. In the developed countries, ratios of producer services to entire service industry are above 70%. The economy of world has transformed to type of serving. Producer services of Chinese cities develop in low level. Under the background of economic globalization, developing the producer services energetically is extremely urgent. It has established "three-two-one" guiding principle of estate which gives priority to developing service industry in Wuxi. "The eleventh five-year plan" has brought forward the policy that is"pushing forward producer services". At present, the researches in this field of producer services falls behind in our country. The pertinent document data is less, and the depth and extent of studying is also insufficient. Therefore, in the present stage, how to study the development of producer services all-round and resolve the problem of reality are very important things lying before us.The paper mainly analyzes the theory and demonstration of development of cities'producer services taking Wuxi as an example. It combines the methods determine and quantitative analysis. The paper attaches importance to the all-round collecting, arranging and summing up the relevance data of producer services. Then it analyzes the necessity of developing the producer services under economic globalization according to the preceding theoretical analysis: the basic theory of industries in the Industrial Economics, transaction cost theory in micro-economics, aggregation economic theory of services, specialization and outsourcing theory. And it is proposed that producer services is the core dynamic of pulling the export growth. Through collecting large amount of relevant data of Wuxi's producer services the paper analyzes the condition of aspects such as output, inner structure, foreign investment, the effect to export trade, some key industries and so on. It points out the questions and compares with Suzhou's. At the same time, by introducing the development of producer services in world's cities, it identifies gaps and summes up the experience that Chinese cities can draw on. In the measurement model analysis, the paper uses multivariate linear regression model calculates the contribution degree of producer services to economic growth, and the results show the degree is not biggest. So its advantages are to be further enhance. Then using contegration models and Granger causality test to observe the correlation between producer services and manufacturing industry. The results show that there is cointegration and a two-way causal relationship between them, but the correlation coefficient is not enough. So it is necessary to promote the development of interactive further. Finally it submitters the suggestion of policy in developing producer services energetically on the base of the results of theoretical analysis and demonstration.