Research On Producer Services In Metropolitan Area

Producer services is an important part of modern service industry, serving as inputs to other goods or services’produce, playing an important role in reducing production costs, improving production efficiency, increasing the degree of specialization, and promoting regional economic development. China is in the critical period of upgrading the industrial structure and shifting economic development mode, so it needs the rapid development of producer services urgently. After the financial crisis in2008, multinational investment and outsourcing services quickly transferred to China, and create great opportunities for the development of producer services. Now, the academia has achieved a lot in growth and agglomeration of producer services research, but researches on intrinsic motivation and interaction mechanism of producer services in the metropolitan area is not deep enough. Those gave more concentration on producer services development of the whole area (such as countries, provinces), while neglecting the influence factors between big cities and small cities, lacking of researches on market demand, industrial division, support conditions, rules and mechanisms which are the basis of producer service development. This highlights the necessity and urgency to study the development of producer services in metropolitan area.This Paper will figure out the intrinsic mechanism in the development of metropolitan producer services based on literature review and comment on it, build the framework of research on metropolitan producer services’development. This paper includes introduction, literature review, domestic and international status of metropolitan producer services’development, intrinsic mechanism of metropolitan area’ development, pattern of the development of producer services, theoretical model of outgoing development of producer services and empirical and case analysis of panel data.Chapter One:Introduction. This chapter mainly focus on background, research ideas and research methods in the research of metropolitan producer services. This Paper will use related theories of industry economy, regional economy, service economy and other disciplines, deepening the research of the producer services. Research methods include comparative analysis, measurement analysis and case studies. This chapter also will generally introduce the structure and innovation ideas of the text.Chapter II:this chapter summarize the theories of producer services; define concepts and characteristics of metropolitan economy, connotation and denotation of producer services. Through analyzing the agglomeration and its internal dynamic adjustment of producer services, the interaction between metropolitan economy and producer services, services and manufacturing, it found that current study mainly concentrate on New York, London, Tokyo, Hong Kong, Singapore and other big cities, lack of systematic theory and empirical research on producer services in China metropolis. Also these researches are most descriptive, comparative, but be lack of theory and econometric analysis on the mechanism of the motivation and endogenous growth of metropolitan producer services.Chapter III:domestic and international status of metropolitan producer services’development. Firstly, inspect the course of producer services development in foreign cities, and summarize its development experiences and the promotive policies. It found that the establishment of a comprehensive policy system, formulation of industrial development planning, improvement of basic services sector, attention to human resource development and training, coordination and supervision of trade associations, are the reasons of producer services’rapid growth. Then, compare the spatial layout characteristics of producer services in New York, London, Tokyo and Seoul. Finally, analyze China’s statistical classification of producer services, policy evolution, and the state of producer services development and its problems.Chapter Four:The endogenous mechanism of metropolitan Producer Services. According to the results of literature review, sort metropolitan producer services’ effecting factors of four aspects——economy, space, technology, culture. Among them, the economic factor is divided into two categories:market and the concentration factors. Technological factors are divided into information technology and innovation. From the perspective of motivation mechanism, the increase in demand for metropolitan producer services is the dynamic power for its development, science and technology is the driving force of it, government policy is the supporting power.Chapter V:the model of metropolitan producer services’development. Firstly this paper points out that the development of metropolitan producer services mainly concentrate in scientific research, technical services, financial services, transportation, warehousing, postal industries, information transmission, computer services and software industry, business services and other fields. Then, study the development model of producer services from different perspectives. From the relationship between producer services and manufacturing industry, discuss "endogenous" development model,"outsourcing" development model and "Symbiosis" development model; From the perspective of source of producer services’development, study the way of export-oriented and domestic outsourcing services’development; from the prospective of space-based organizations, analyze the new industrial area around Tokyo, the wheel-type cluster model of Manhattan business district, South Sioux Grand District Satellite Platform gathering mode. From the prospective of Investors, analyze the features of domestic capital drive model and foreign capital drive model.Chapter VI:the model construction and empirical test of metropolitan producer services development. Through verifying the influence factors of producer services, this paper built a model which sets investment, urbanization rate, economic development, market demand, specialization as influence factors, explaining the outgoing development of metropolitan producer services. The data for empirical analysis mainly are panel data consisting of70samples of7cities from1999to2008-Chengdu, Chongqing, Xi’an, Zhengzhou, Wuhan, Nanjing, Hangzhou—which have the similar development levels. Then the individual fixed effects model will be established, and use regression analysis of Eviews6.0software to test the factors of metropolitan producer services’development.Chapter VII:the analysis of Chengdu producer services’Development. First, through analyzing the overall situation of service industry in Chengdu. Then, through thorough analysis of the development of producer services in Chengdu, it found that transportation, storage and postal services, information transmission, computer services and software industry, financial services, scientific research, technology services and geological prospecting, education, have become the leading industries of Chengdu. But compared with Beijing, Shanghai, Guangzhou, the overall development of producer services in Chengdu is inadequate; the proportion of transportation, warehousing and postal industries, leasing and business services, financial services in the services sector is far lower than those developed cities. There are still many problems waiting to be solved, such as there is little large-scale enterprises of Producer Services, the leading driving effect is not strong, supply shortages, diffusion effects need to be further enhance and so on.This paper attempts to be innovative in the.following four aspects:1.The endogenous mechanism of metropolitan producer services industry is elaborated from the aspects of affecting factors and developing power. The affecting factors are divided into four aspects in this paper, namely, economic factor, space factor, science and technology factor, and humanities factor. Space factor includes transportation and communication elements. Science and technology factor includes information technology and innovation factors. Humanities factor includes political elements, historic elements and cultural elements. On this basis, dynamic mechanism of producer services industry is analyzed. It is claimed that the increase in market demand is the pulling power; science and information technology is the constant impetus, and government support in policy-making is the holding power.2. The model construction and empirical analysis of extraversion development of metropolitan producer services. this paper constructs the theoretical model of metropolitan producer services’extraversion development with investment, market demand, degree of specialization, urbanization, economic development levels as the influencing factors. It found that, urbanization level, investment quantity, market demand (the second industry) have a strong positive effect on the development of export-oriented producer services. quantitative increase of per capita GDP and employed population location quotient can not improve the level of extraversion development. Due to the differences of development conditions, location factors, and policy support for openness and intensity, there was a big difference in the spontaneous total import and export. The eastern coastal city like Hangzhou, Nanjing obviously have higher import and export indices than west central cities.3.Comparative analysis of the choice criterion of dominant industries of producer services is conducted in this paper. Considering the traditional theory of diamond industries, the industry’s comparative advantage and competitive advantage as well as the characteristics of regional producer services, this paper puts forward that the choice criterion of dominant producer services should include demand basis, industry association basis, elements of reference, competitive basis, government-oriented basis, market share basis, technological progress basis, opportunities benchmarks, et cetera.4. Case study of metropolitan producer service industries is conducted in this paper. Taking Chengdu for example, this paper deeply analyzes the development status, the problems and its reasons of metropolitan producer services by data analysis. It is found that the proportion of transportation, warehousing and postal industries in the services sector, leasing and business services, financial services in the services sector is far too low. Large-lot producer is not enough; the driving effect is weak; industry clusters has being formed, but the diffusion effect is need to be further enhanced. And the public service platform lags behind. Furthermore, this paper also put out some measures to accelerate the rapid progress of producer services.Development of metropolitan producer services is a complex issues arousing from the formation and evolution of regional economic structure. This paper mainly analyze the affecting factors and the internal development mechanism of producer services, and tries to construct theoretical model of extraversion development of metropolitan producer services. However, this paper had not explored deeply on the subjects such as the spatial structure of producer services, the interactive relationship between international cities, the relationship between market and government in the process of metropolitan producer services’ development. Those issues will be further studied in the future.