Empirical Study On The Interactive Relation Between The Producer Service And Equipment Manufacturing Of Guangdong

Guangdong has made great progress in economic development and industrialtransformation since the reform and opening. It has entered the critical period oftransformation of the economic and social development. As strategic industries of equipmentmanufacturing industry and producer services in Guangdong, they have a significant impactonthe transformation of economic development patterns, establishment of a modern industrialsystem and improvement in country industrial international competitiveness. At the same time,Manufacturing is the strong support of the development of producer services gradually, andequipment manufacturing industry which is the capability of the manufacturing sector plays arole in promoting the development of technology and knowledge-intensive industries ofproducer services. Producer services not only meet the demand for equipment manufacturingindustry, but also can speedup the process of the optimization and upgrading of the equipmentmanufacturing industry. It is meaningful of studying on interactive relation between theproducer service and equipment manufacturing.Firstly, the major theoretical foundation such as Social division of labor theory,transaction cost theory, industrial association theory, value chain theory is described andanalyzed. Analysis of the relationship between the two industries at different interactivedevelopment stage. And this article describes the interaction between producer services andmanufacturing at home and abroad research literature. Secondly, analysis of the productiveservice industry and the present condition of the equipment manufacturing industry inGuangdong, so that it can provides the reality basis for the following research. Thirdly, using2002and2007input-output table of the Guangdong to analysis short-term static industrialinteraction and the interaction between the basic situation of the industry within the industry.Then, the article uses VAR and impulse response function, variance decomposition, Grangercausality analysis long-term and dynamic industrial interaction and development trend. Theempirical results show that there is an interactive relation between equipment manufacturingindustry and producer services in Guangdong. And the interaction is at the starting stage. Thedegree of industrial interaction is being strengthened constantly. Then the article draws a conclusion and compared with other conclusions obtained by some investigators. Finally, thispaper gives some suggestions accordingly.