Producer Services Externalization And Dynamic Externalities,

Since the 1970s, the trend of service industry development accelerating while manufacturing decreasing has appeared in advanced economies. In recent decades, China's services , especially producer services , has got great achievement, but in comparison with foreign countries, the development is still at a preliminary stage, with a loose link to manufacturing. meanwhile, producer services'intermediate inputs ,as a proportion , is far lower than that of developed countries.In this paper, we attempt to explore the constraints factor and the intrinsic growth mechanism of Producer Services, and analyze the impact of external factors on Producer Services. Therefore, based on the simple description of relevant research in producer services, we explore and anslyze the core questions: the externalization and dynamic externality.This article tries to research the externalization and dynamic externality of producer services together. the model of dynamic externality is based on the endogenous growth theory of Lucas (1988) and Romer (1986 , 1990), and the model of externalization is based on traditionary utility theory .Thus, we need to discuss from two aspects: producer services and manufacturing ,then build a revelant theory model. After that, we carry out the interrelated empirical study. The conclusions are as follows::(1) In Yangtze River Delta, there are significant MAR dynamic external economy, JacobsⅡdynamic external economy by diversification of industry as well as Porter dynamic external diseconomy by local competition.(2) JacobsⅡdynamic external economy caused by diversification of industry is more significant than JacobsⅠdynamic external economy caused by diversification of industry, which indicates that interaction among all the industries is not as active as that between sectors of producer services.(3) Enterprises have significant, negative scale preference to the externality of the producer services, while the profit and authority preference is not so obvious.(4) There are significant MAR dynamic externalities in subsidiary industry of producer services, and the effects of dynamic externality are followed by finance and insurance industry, transportation,warehousing and postal industries, scientific research and technical services industry, information transmission, computer applications and software industry.(5)there are positive significant Porter dynamic externalities in finance and insurance ,positive Jacobs and negative Porter dynamic externalities in transportation,warehousing and postal industries ,and negative Porter dynamic externalities in scientific research and technical services industry ,as for information services, there is neither Jacobs nor Porter dynamic externalitiesAt the last part of this paper, we discuss the arising problems and put forward to the basic idea of promoting the development of the producer services in the Yangtze River Delta.