The Research On The Development Of Producer Services And Manufacturering Industry In Southern Region Of Jiangsu Province Based On Global Value Chain

In the process of economic globalization, southern region of Jiangsu province holds more industrial transfers from abroad due to the superior location and resource endowments, thus becomes one of the regions with the highest degree of openness. However, the development of export-oriented economic model is still unable to improve the low-end position of the local manufacturing industry in the global value chain,and multinational corporations continue to dominate the segment of higher value-added in the international division of labor. In the background of the global financial crisis and economic recession triggered by sub-prime crisis, local manufacturers are trying to find the way to improve the location from low to high level facing the extrusion of international economic environment and the pressure of domestic resources and the environment. In this case, the developments of producer services have attracted wide attention. International experience shows that producer services throughout the productive process have become the primary source of product differentiation and value-added, and also the decisive factor of the non-price competitiveness of the manufacturing. The development of producer services of southern region of Jiangsu province is lagging behind; particularly the high-level producer services are inefficient and highly incompatible with the developed manufacturing, and unable to form a virtuous circular of interactive development. In order to improve the status of the international division of labor, manufacturing enterprises in Southern Jiangsu Province should add the investment of producer services, especially the high-level technology-intensive and knowledge-intensive services and break the current OEM model of manufacturing development, truly climbing to the high-level of industry value chain.This article not only makes an analysis of the inherent mechanism of how the development of producer service influences the manufacturing from the theoretical aspect, but also compares different operation models of producer services based on the analysis of producer service system of manufacturing and explains the full considerations of manufacturing enterprises in the selection of producer services operating mode. On the basis of that, we make an empirical study of the impact of producer service to manufacturing in the southern region of Jiangsu province to verify the influence of different producer services to the manufacturing and obtain a conclusion with practical significance and finally we put forward countermeasures and proposals on the rapid growth of producer services in Southern Jiangsu Province to promote the competitiveness of the manufacturing sector.