Input-output Research Analysis Of Interactive Development Between Service And Manufacturing Industry In Liaoning Province

The prerequisite and foundation of modernization is industrialization, and thedevelopment of industrialization relies on the upgrading completion and transformationof the industrial structure. On one hand, the development of the service industry improvesthe efficiency and enhances the competitiveness of manufacturing industry; on the otherhand, it also provides positions for the personnel who are being laid-off by modernproduction. The development of the manufacturing industry increases demand for theproducts of the service industry and enhances the ability of service industry innovation.The interactive between manufacture industry and service industry promotes industrialstructure optimization and completes the upgrading of industrial structure. The Upgradingof industrial structure in Liaoning Province relies on the demands of service industry bymanufacturing industry. The increase of the ratio of the service industry is the only wayfor Liaoning Province to enhance the international competitiveness.This article is based on the development of the industrial economy of LiaoningProvince, studying relations of the interaction development between manufacturingindustry and service industry of Liaoning Province. First of all, study the interactionmechanism of the service industry and manufacturing industry. The interactivedevelopment of Service industry and manufacturing industry has benefited from the rapiddevelopment of producer service,and manufacturing industry has access to the detaileddivision of labor、extending the value chain、increasing sales by producer serviceoutsourcing, service industry enhances innovation capability through meeting thedemands of internationalization, specialization, and scale of the manufacturing industry.Secondly, from multiple perspectives analyzes the current development situation ofthe service industry and manufacturing industry of Liaoning Province through theapplication of input-output analysis method. The results showed that the service industrydevelopment in Liaoning Province is still in its infancy, lagging behind the developmentof manufacturing industry, this phenomenon is restricted the interactive developmentbetween service industry and manufacturing industry. Thirdly, apply the variable structuredynamic input-output model to analyze the impact on manufacturing industry output through the changes of investment proportion of service industry and the impact onservice industry output through the changes of investment proportion of changes inmanufacturing industry, while its elasticity is calculated. The results showed that:Liaoning Province manufacturing production services has a significant role in boostingthe service industry, but service industry has a weak impact on promoting of themanufacturing industry, interaction between the two is still in its infancy. Finally,summarize the conclusions of the essay and puts forward policies and recommendationsto promote interactive development of the service industry and manufacturing industry ofLiaoning Province.