Demonstration Research On The Spillover Of Producer Services In Jiangsu Province

Producer services, as an important part of the service industry, makes more andmore contribution to economics growth and has become the important force ofpromoting economics development, enhancing industrial competitiveness,optimizing and upgrading industrial structure. China is in a critical period ofeconomics restructuring. Producer services which make it play the spillover effectsin economics growth and absorbed employment has become one of the issues neededto be urgently addressed in China’s economics development. Therefore, to study andquantitative the Producer services’ contribution to the economics growth, exploredevelopment policies of the producer services have become the focus of manyscholars. At present, researching the producer services contribution to the economicsgrowth only focused on the direct contribution, but ignored the interactiveassociation with other industries and underestimated the spillover effects. Based onthe current research, this paper tries to analyze the spillover effects both from thetheoretical and empirical point of view and provide a basis for a comprehensiveassessment of producer services in promoting economic growth and the importanceof improving the industrial competitiveness.Firstly, this paper begins with the theory of the producer services’ spillover.Based on the Industry association theory, Endogenous growth theory and indirectproduction theory, this paper thinks the producer services play the spillover effectson the economics through three methods: optimizing and upgrading the industrialstructure, improving productivity and enhancing the capacity of employmentabsorption. At the same time, this paper learns from Feder model, divides the overalleconomy into two services departments-producer and un-producer service and buildsan improved two-sector model. Secondly, this paper uses input-output table data tocalculate the intermediate demand rate indicators and defines the scope of theproducer services in Jiangsu Province. Based on the spillover effects model, thispaper uses panel data analysis to take regression test in order to measure thespillover values in Jiangsu Province. As the overflow values in different areas arevarious, this paper analyzes the six factors impacting the producer services’ spilloverand uses the regression analysis to quantitative the spillover of the analyzing factors.Finally, based on the summarizing conclusions of this paper, this paper combines with the actual situation of Jiangsu Province and proposes the targeted policyrecommendations in order to maximize the spillover effects on the economicsgrowth and industrial structure optimization and upgrade and to promote theeconomics development of Jiangsu Province.