Research On The Relationship Between Producer Services And Manufacturing

With the development of economy and increasing of competition, producer services departs from manufacturing, becoming an independent industry characterized with intensive knowledge and technology, and assumes an increasingly important role in the entire service sector as well as national economy development. China is in the crucial period of economic transformation and upgrading, industry structure adjustment has scored initial achievements and value added of service sector has accounted for more than half of GDP. However, there is still a large gap compared with developed countries. The development of the producer services and manufacturing is a key link in the process of industrial restructuring and upgrading. Optimizing the industrial structure, accelerating the development of producer services has an important significance to Chinese economic transformation and promotion of economic efficiency level.Firstly, this paper introduces the development mechanism of producer services and manufacturing from the perspective of social division of labor, development stage, and the theoretical basis and so on. Secondly, this paper analyzes the development and the current problems of China’s producer services and manufacturing, and reviews the experience and features of developed countries. Thereafter, based on the panel data of Chinese 285 prefecture-level cities from 2003 to 2013, this paper makes an empirical analysis of China’s current development of producer services and manufacturing. The results show that in a whole, the expansion of producer services has a positive effect on the efficiency of manufacturing sector. On the regional level, there is an imbalance between eastern and mid-west region and the development of producer services in mid-west region promotes the development of the manufacturing sector better. Among the high-end producer services sectors, financial sector enhances the level of manufacturing efficiency most significantly.