The Impact Of The Development Of Producer Services On Manufacturing Industry Upgrade In China

Traditionally,when it comes to such subject as how to transform and upgrade manufacturing, the Chinese scholars and researchers usually study this subject from inside the manufacturing itself. With the riset of endosymbiotic theory between industries, more and more scholars began to pay attention to other industies's impact on the development of maufacturing,such as producer service. In fact the producer service has a profound and extensive impact to manufacturing development.producer service is one of important reasons which restrict manufacruring upgrading.In view of the economic reality,this paper studies the impact of producer service on manufacruring industry upgrading in our country,combining the overall analysis of the whole society with the decomposition analysis of ecomomic sectors.From this,the reserch has certain function to rich the related study of our country and to provide some certain reference to our public policy.Firstly, through the analysis of producer service and manufacturing's current situation,we know that,the development of producer service palys an very important part in manufacturing upgrade.Then,this paper based on the basic theory of producer service and manufacturing upgrade,We take procducer service as an endogenous facter of manufacturing upgrade in the Endogenous Growth Theory framework to explore the mechanism that the producer service impact manufacturing upgrding, and also allalyzes the ways of producer service promoting manufacturing upgade.After that academic analysis,then through empirical analysis to verify the effect of producer Service toward China's manufacturing upgrade.Empirical part uses the total output of manufactluring and the total input of producer service from 1987 to 2002, and also the panel data from year 2002 to 2007 of China's 29 provinces, including the added value, total output of manufactluring and also relevant data of transportation&telecommullications, finance&insurance, real estate business, integrated technology services to verify the illfluence of productive services of China toward manufacturing upgrade. First, utilize the basic model of producer service promoting manufacturing upgrade for empidcal regreession. Then, Chinats manufacturing industry is divided into two categories of skill—intensive manufacturing and labor—intensive manufacturing, and been done econometric analysis separately with producer services. By analysis of the regeression results obtained the following conclusions:There is a significant impact of chinese producer services on the upgrading and developing of manufacturing indurstry;Finance and insurance industry plays a greater role in the upgrading of manufacturing industry;The effect of technology services on the upgrading of manufacturing has show inhibition;Producer services have more effect on the upgrading of skill-intensive manufacturing industy than labor-intensive manufacturing industry. That's mean,we should make discriminatory policies.Finally, aiming to take full advantage of producer service's effect to promote manufacturing,this paper propose policy recommendations on the basis of the above qualitative and quantitative analysis and the actuality of our country.