Producer Services&Technology Progress

When summarizing world economy actual trends, we can find the producer services added value proportion to GDP of developed countries is increasing, and the technological progress contribution rate is increasing as well. Is there any relativity between the both? If yes, how to explain it in theory? Is there any consequence between the both? For these questions, there is no existing theory for the study and analysis in domestic economics circles.From Deng Xiao Ping’s conversation on Year1990, China formally set up socialism market economy with Chinese characteristic. In this system background, is there any technological progress contribution factor in the growth of GDP? How does the proportion to GDP and efficiency of producer services affect the technology progress? At the aspect of quantitative analysis, is there is quantitative relationship between the both? To find out the answers for all these question is this paper’s study direction.This paper’s main purpose is to study the relationship between producer services and technology progress. As study objects, firstly, this paper analyses the meaning, characteristic and development status in quo of producer services and the conception and representative modality of technology progress. Then, based on four kinds of theory, this paper set forth the relationship between the both. The theory includes "smile" curve theory, the production frontier front theory, the industrial cluster theory and the theory of the producer services’ effect to every step of technology progress. Additionally, this paper thinks the relationship between the both is not only one-way direction relationship but also the bidirectional relationship. In the section of Econometric study, this paper take producer services value added proportion to GDP ("Producer Services Value added Proportion" for short in the paper,&represented by "ps") as the calculation index of producer services development status and take technological progress contribution rate as the calculation index of technology progress (represented by "TPC"). Using Time series data from year1991to2008, after OLS regression, this paper get economics model as follows:TPC=e^(24.24-4.253D)(ps^8.289)(h^2.285)This model show the elasticity coefficient of ps to TPC is8.289. It means that from year1991to2008, producer services’development promotes the technology progress. But if studying on the subsection of producer services, this paper found that there is on positive relationship between the finance industry and technology progress in China from year1991to2008, the conclusion is same for science research industry in China. However, there is positive relationship between logistical industry and technology progress in China from year1991to2008.At the end of the paper, from the viewpoint of promoting the technology progress, Integrating penman’s thoughts and the development experience of developed countries, this paper summarizes economic circle’s the considerations and suggestions to producer services development of China...