Analysis Of The Development Of Hang Zhou's Producer Services And Its Influencing Factors

Since the 70s of 20th century, the development of producer services is very rapid, which has become the fastest-developed sector in developed countries and the main driving force for economic growth in the national economy. It plays a significant role in promoting economic growth and employment increasing, enhancing urban functions and strengthening regional competitiveness, optimizing industrial structure and accelerating economic growth pattern and other aspects. In recent years, Hangzhou's producer services have achieved great development, its share of output and employment share are on the rise. But compared with developed countries and Shanghai, there are still some shortcomings and problems in the aspects of such as the overall level of development and the internal structure. In this context, this paper applies the theories of economics, comparative analysis, structural analysis and other methods, giving a more comprehensive and deeper analysis of the development of producer services in Hangzhou and its influencing factors.Firstly, using detailed data this paper makes a empirical analysis of the output of producer services, industry structure, investment share, industry concentration in Hangzhou and analyzes their numbers and employment flexibility, the industry contribution. The results show that producer services'absorbing labor capabilities continue to increase, but the traditional producer services employment elasticity is negative, high-tech industry employment growth elasticity is higher. In Hangzhou, the contribution of manufacturing sector on the producer services is larger than the contribution of producer services on manufacturing production. Producer services contribute to the higher rate of economic growth, but the contribution of specific sectors are different. Producer services play a significant effect on economic growth. Overall, the producer services in Hangzhou have a significant role in economic growth.Secondly, this paper analyzes the influencing factors of the development of producer services in Hangzhou more comprehensively and deeply. The results show that the specialized division of labor on the development of producer services in Hangzhou play a catalytic role, but process of industrialization is counterproductive. The development of producer services have crowding-out effects on manufacturing industry. Fixed asset investment, openness, non-public economic have a positive effect to the development of producer services in Hangzhou.Finally, for the problems of producer services in Hangzhou, this paper proposes some measures and recommendations to speed up its development.