The Impact Of Producer Services On The Technical Efficiency Of The Manufacturing Industry

After the reform and opening-up policy,China's manufacturing industry developed rapidly.China exports great products with comparatively low prices to all over the world.China's manufacturing industry holds an important position in the global economy.However,when China's "demographic dividend" begins to disappear and the request for sustainable development of environment and economy,China has to transform its traditional economic development mode.Regarding the development history of developed western countries,producer services industry played an important role in their countries development.Then it is essential to find how do producer services industry make effect on the economy.Based on the reality of China's economy,this paper intends to figure out what and how China's producer services industry do to the manufacturing industry.On the basis of economic theories and previous researches,producer services make effects on manufacturing industry directly and indirectly,especially,the indirect effect contains reducing the cost of manufacturing companies and improve the innovation ability of manufacturing companies.Using the data from 2004 to 2015,the empirical analyses show that the development of produce services improved the technical efficiency of labor-intensive manufacturing,capital-intensive manufacturing,technology-intensive manufacturing.What's more,the producer services also help companies of these industries reduce their production cost and improve their innovation abilities.At the same time,except the labor-intensive manufacturing,the effect of producer services showed great spatial spillover effects,and the spillover effects also contained direct and indirect effects.The development of producer services has positive effect on the technical efficiency of manufacturing industry.The effects happen locally in labor-intensive,capital-intensive and technology-intensive manufacturing industry.The development of producer services also have positive effects on the technical efficiency of capital-intensive and technology-intensive manufacturing industry in the neighbor area.The effects take place not only directly,but also through reducing the costs of capital-intensive and technology-intensive manufacturing industry.But the effect of improving the innovation abilities of manufacturing industry has to be developed.