A Research On The Relationship Between Industrialation And Services Development In Jiangsu Province

Generally speaking, the socio-economic development will experience agriculturaleconomy society, industrial economic society and service economic society. In theagricultural economy society, the added value of agricultural in GDP possession thelargest proportion, the next one is industrial. With the economic development, theproportions which express added value of agricultural in GDP keep decreasing. Onthe contrary, the proportion of added value of industrial in GDP was graduallyincreasing. What’s more, the proportion of added value of service in GDP wasincrease too. In the early stage of industrialization, the service is attached to theindustry. In the mid-industrialization, the service industry has been separated fromindustry, but doesn’t show obvious effect for industrialization. During the later stagesof industrialization and the service economy, industry and service developmentinteraction. According to the experience of developed countries, in the later stages ofindustrialization the development of sector, especially the production will be up to60percent. The added value of service is higher than60percent in service economicsociety. However, research found that in Jiangsu province industrial the added valueof service in the proportion of GDP at40percent in recent years, and industrializationand service industry development relations didn’t present a correspondingphenomenon. This paper aims to study of industrialization and service industrydevelopment relationship in Jiangsu province. This study is divided into five parts.The first part mainly described the theory of industrialization and developmentservices. And then discussion of manufacturing and service industries, especially theinteraction mechanism of producer services from the theoretical.The second parts study the relationships between industrialization and thedevelopment of service from theory aspect.The third part describes the status of industrialization in Jiangsu province, themanufacturing status and service status application of statistical method. According tosome indicators to determined the stage of industrialization in Jiangsu province.Jiangsu manufacturing equipment especially manufacturing industry developed wellin recent years. Service industry growth in between20%and30%, but productbilityservice industry is growing very slowly.In the fourth part, we do empirical research for the relationship between industrialization and the development of service. We collect ten indexes whichinfluence the process of industrialization and eight indexes which influence of thedevelopment of the service in Jiangsu province from1992to2009. And then use thecanonical correlation analysis method to the development of industrialization andempirical analysis on the relationship them. The results show that, industrial andservices sector in Jiangsu province are highly relevant. Further from the perspectiveof a typical structure obtained the greatest impact on industrial indicators is forth. Theindexes greater impact on service development is third. Next we examine the causalrelationship between industrialization and services sectors use the Granger causalitytest method. The results show that: industrialization is the cause of development of theservice industry, but the development of industrialization no causality.The fourth part studied the relationship between manufacturing and producerservices in Jiangsu province. We analysis the manufacturing value added andproduction value-added services use measurement methods for Jiangsu province from1982to2010. The results showed that: the development of producer services industryon the role of promoting. Granger causality test results show the development ofproducer services on manufacturing didn’t boost. Further study of this chapter withinthe relationship between producer services industry use OLS method in Jiangsuprovince from1982to2010. Regression results show that the role of producerservices industry is the largest commercial, followed by transport, storage, postal andfinancial sectors, and finally the scientific technical services.The fifth part summarizes the full text, and gives some specific policyrecommendations for service sector in the development of the industrializationprocess.