The Interaction Between Producer Services And Manufacturing Industries

Manufacture is a important measure of a country’s comprehensive nationalstrength, manufacture plays a important role in the industrialized countries’ economicgrowth. Since the thirty years’ implementation of reform and ten years’accession tothe WTO, China’s manufacturing industry has developed rapidly under the promotionof domestic demand and overseas demand, which provides a strong support for thedevelopment of the countries and regions. With the geographical advantage djacent toHong Kong and Macao and the reform and open policy advantages, the Pearl RiverDelta’ manufacture made a great contribution to the region’s economic development.However in the21st century, service industry presents a tenacious vitality.The interaction between producer services and manufacturing developmentbecomes the main way of realizing industrial upgrading. Through the literature reviewin this paper,we found that producer services and manufactures interact,depend oneach other and have some complementary relationship. But the relevant literature ismainly aimed at the level of the whole country, less to regional research, least to PearlRiver Delta, therefore, this article intends to explore in this aspect.In this article,we first study the development of the producer service industry andmanufacturing industry of nine cities in the Pearl River Delta, we analyze therelationship between producer services,each segment producer services andmanufacturing industry competitiveness in Pearl River Delta on the basis of paneldata model,and the results show that producer services have great promotion formanufacturing industry’ competitiveness in the pearl river delta, the development ofeach segment of producer services can improve manufacturing competitiveness indifferent degree; Secondly we analyse the development condition of producer servicescluster in the Pearl River Delta with HHI and LQ, and then we study the developmentof the manufacturing industry ‘s influence on producer services cluster on the basis ofpanel data model in the Pearl River Delta. The results show that in general themanufacturing in the Pearl River Delta has a positive effect on producer serviceindustry agglomeration level;The results show that in general, manufacturing has apositive effect on agglomeration level of producer service industry in the pearl riverdelta; Greater industrialization and urbanization also can promote the agglomerationof producer services.At the end of the paper,we put forward practical feasible policy suggestionsbased on the nine cities’ present situation of the Pearl River Delta, they also have thesame significance for China’s industrial development at the same time.