Research On The Impacting Of Intra-product International Specialization Of China’s Manufacturing Industry On Producer Services

With the developing of economic level, the optimization of industrial structureoptimization, service-oriented economy is an inevitable trend. Accelerate the serviceindustry, especially the development of producer services is an important way to promoteChina’s industrial structure adjustment, transform the economic growth mode, relievepressure on the transfer of labor and improve the overall competitiveness of economy. AsChina’s integration into the global economy, the extent of the China’s participation into theinternational division of labor has been deepening, also its level of development has beengreatly improved. The development of manufacturing specialization is an importantfoundation of the endogenous demand and development about production and serviceactivities, but also an important mechanism for promotion and development of thedeepening of the producer services’ division through the industrialization.Then how the deepening of manufacturing division influences the development ofproducer services? By combining relevant theories and practice, the paper profoundlyanalyzes the influencing mechanism of intra-product specialization in manufacturingindustry on the productive service industry. The analysis conclusion is that given currentfundamentals and economic development characteristics of China, there are twoinfluencing mechanisms that influence the productive service industry. One is theincentive mechanism and the other one is the restraining mechanism. After the conclusion,the paper lists a series of metrics of intra-product specialization based on previousresearches conducted by other scholars. Making use of these metrics, the paper positionsthe role of Chinese manufacturing industry in intra-product specialization and givessufficient explanation of current development level of the productive service industryaccording to classification of China’s economics. The paper discovers that after China became a member of WTO, Chinese manufacturing industry’s participation inintra-product specialization has become increasingly greater while Chinese productiveservice industry is still dominated by traditional businesses and emerging businessesaccount for a very little market shares and are in their infancy. Based on aforesaidresearches, the paper fully examines the actual influence of intra-product specialization ofChinese manufacturing industry on the development of productive service industry. Theresults show that although Chinese participation in intra-production specialization hasboth positive and negative influences on the productive service industry, but themanufacturing industry has more incentive effects than negative effects thus promoting thedevelopment of productive service industry.