Producer Services And The Improvement Of The Productivity Of Manufacturing Industry

Along with the adjustment of industrial structure in the process of economic development,service industry plays a more and more important role, especially the producer services whichaffect the development of manufacturing. Through theoretical analysis and empirical research,this paper check out the interaction between producer service industry and manufacturingindustry in China. It says that higher productivity of the producer service can highly improve theproductivity of manufacturing. Advanced producer service like finance，logistics industry and theinformation service industry are now playing an active role in the growth of manufacturingindustry. We also find that as most of the manufacturing enterprises are still develop under themode of self-sufficient, which make the mechanism of the interaction between producer serviceand manufacturing cannot play its due effects. Besides of that, R&D investment, human capitaland industrial agglomeration are important factors that promote the productivity of themanufacturing industry. But right now in China the level of development of the producer servicecannot satisfy to support the development of manufacturing. We should bring in more advancedproducer services from developed countries and develop high-tech talents to improve theinteraction between the two industries and promote the development of economy.