Research On Industry Relevancy Between Producer Services And Manufacturing Of Jiangsu Province

Producer services are taken as intermediate inputs by the producers of other goods or services in the services industry and the refined products of the social division of large-scale production. Practice of the Western developed countries has proved that: producer services, which separated from the industry, play an important role in the promotion of industrial development, particularly the manufacturing industry. It is one of the sources building manufacturing industry. Jiangsu province is a China's manufacturing industry province, which is committed to building international advanced manufacturing industry base and stusy the relationship between services and manufacturing.This will help clarify the development ideas the producer services and manufacturing industry.This paper summarizes the mechanism of the producer services and manufacturing industry from the value chain, the division of labor theory, theory of ecological communities, symbiosis theory. No matter what theory it based, it is considered that producer services is closely related to manufacturing industry. By using the input-output analysis, taking the Jiangsu province in 1997 and 2002 input-output table as the data sources, we use the intermediate demand rate, the intermediate input rate, the influence coefficients rate and sensitivity coefficients rate to analyse the relationship of the producer services and the manufacturing industry. The Analysis: At present, there is no enough interaction between the manufacturing industry and the producer services, and the wholesale and retail trade, transportation, storage, post and telecommunications, and other traditional services have input a lot in the manufacturing sector. Now producer services need to be devoloped and the grade of the manufacturing industry should be improved. This article also studies how the Jiangsu producer services to enhance the competitiveness manufacturing industry. By the production function-based model and the gray trend analysis, using the relevant data of 2000 to 2008 Statistical Yearbook of Jiangsu, we analyse the impact of the producer services on the manufacturing industry and its classification. The study concluded that: the development of Jiangsu producer services can enhance the efficiency of the manufacturing industry. When the producer services increased 1%, the overall labor productivity of the manufacturing industry will increase 1.35%. In the producer services, transportation, storage, post and telecommunications have the largest influence in the manufacturing efficiencies, and the financial industry has a relatively small impact. There is a lag phenomenon in the enhance of the scientific research and technical services to the manufacturing industry, namely the scientific research and technical services of this year will have positive effects on the efficiency of the manufacturing industry next year. Meantime, the impact of the producer services on different manufacturing industries is different.Some producer services such as the financial industry, to some extent, constrained in the enhance of certain manufacturing industries competitiveness.On the basis of previous paper, the paper put forward the policy recommendations of the further development of of producer services from the government and the market, policy environment, development strategy of important productive services and creating service area.