A Study On Elements Effecting Producers Services Development

In the western countries, producer services has been growing with the biggest rate and its fraction both in the service sector and in the national economy system has been keeping growing in the past30years. Statics show that the amount of producer service has outnumbered2/3-in developed countries, half-in developing countries, of the whole service production. Given that both Statistical data and theory analysis show the essential role of producer service in nowadays economic development, we are facing a very important situation:producer service has been underdeveloped in China. Therefore, how to promote producer service in our country has been an urgent question that we have to figure out immediately. We would attach our attention on the question in this paper.Before doing that, it is necessary to compare producer service in china with that in foreign countries. Additionally, we would use the INPUT-OUTPUT table to get the volume of producer service, since producer service is difficult to tell from service sector.We should find out it is what factor influence producer service development first. It is informed to start with the most prevailing theory in below to do that:the theory of division of labor, Transaction cost theory (new Institutional Economics) and outsource theory. Theoretically we have found seven elements strongly related to the producer service development, those are:market economy proportion (ratio of state-owned property), degree of domestic market open to foreign economy, degree of urbanization, volume of human capital, merger of regional economies and support of government. We would do Empirical analysis to confirm the influence of the seven elements to the producer service development and come up with some constructional advice based on the theoretical and empirical results.