Research On Market Mechanism Of Development Of Producer Services

With the development of the world's economy, service has been more and more important; that is to say, world's economies have entered "service economy". At the same time, the researches on the service economy are increased. Service is separated from manufacturing industries. There is a close relationship between producer service and manufacturing industries. Based on the vertical market structure made of producer service and manufacturing industries, the paper analyzes the price effect and the innovation income effect in the vertical market structure and educes the suitable market mechanism for the development of producer service.The paper is divided into five chapters. The first chapter is about the issue selection gist, relative research review, research approach and research content. The second chapter applies the concepts such as producer service and vertical market structure, analyzes the connotation and types of the vertical market structure of producer service. The third chapter is the theory analyze of the market mechanism of producer service. This section focus on the price effect and innovation income effect of producer service in the vertical market structure. The fourth chapter is empirical research. Based on the data of PPI of USA, this paper analyzes the price impress effect between 8 producer service and manufacturing using ECM. The last section is the conclusion.This paper, using theory and empirical methods, educes that: in the vertical market structure comparatively centralized, the price wave of producer service affected by the prices of products of manufacturing is not very obvious; the prices are steady comparatively. That is good for realizing credible profit and carrying on the persistent innovations. In the vertical market structure comparatively centralized, no matter the non- cooperate innovation or the mix innovation the producer service used, the profit of innovation is more than manufacturing, that's good for advancing the efficiencies of innovation, realizing the steady development of industry. The conclusion of the paper: the vertical market structure comparatively centralized is suitable for the market mechanism of the producer service.