China’s System Effect On The Interactive Development Between The Manufacturing And Service Industry

Looking back to the development process of flourishing nation, the interaction between secondary industry and tertiary industry develops a main performance to turn to the service trend of the manufacturing industry. Industrial structure around the world presents the total trend that "industrial economy" transforms towards "service economy", which is gradually expanding to the developing country by flourishing nation.In the process of industry interaction, each performer of the government and the market are subjected to the structural factor and industry characteristic factor. Among them, the structural factor including the governmental centralization characteristics, the government-market characteristics of the policy network and outward open factor, has more important of and decisive function. Accordingly, China’s system transformation is mainly according to a few aspects, containing the government working talent change (mainly public finance to divide power reform and government scale), the market turns reform, non-nationalization reform, outward open policy. The local government has independent behavior target and behavior pattern and plays the role of "first activity group" in the system transformation, seeking clean income from the latent system on its own initiative. By all accounts, provincial government plays a more outstanding function than the city and country in the system, which can be considered to be "the first activity group" or leading role.The article studied the mechanism of the system factor affecting the industry interaction in our country. It tried to announce that the extent the reform progress in different regions influencing towards the interaction between service sector and manufacturing industry. As the cushion of research, the article makes a detailed review to the domestic and international research achievement and inquires into the possible existence shortage. It had a deep discussion on the provincial reform affecting the industry interaction between service sector and manufacturing industry on the city level. On this base, it collected and gathered more thoroughly panel data, and then set up a series of index sign. We tried to make an effort to have some improvements on the substantial evidence to this problem.The article is divided into four parts:chapter1is the introduction. It contains the background and research meaning of this topic, the collection of this realm from several angles and the structure and way of thinking of the article. Chapter2is the theory foundation of the article. It firstly carried on a simply description about the current condition of the interaction between the secondary industry and the tertiary industry and also the reform system of China. Then from the theory angle, it build up the theoretical frame that the system factor influence the interaction development between the secondary industry and the tertiary industry. Chapter3is the substantial evidence to the study. We make use of the existed data of the province and the cities and then examine how the system factor influence the interaction relationship between service sector and manufacturing industry on the national level and the province class level, and also the influence of the system factor of the provincial level upon the interaction development of city level. Chapter4is the research conclusion and policy suggestion. We gave the related policy suggestion according to the concrete theory analysis and substantial evidence result.Through theoretical and empirical analysis, the conclusion is that intermediate diffusion system changes make main effect on China’s interaction development between service sector and manufacturing industry, with the provincial government as " the first action group ", by the market reform, the reform of property right system, open to the outside world, the government management as the main line. In the use of service sector to promote the development of the manufacturing industry, the system and policy of the province plays an important regulatory role. It means the uneven distribution of institutional change among the province will generate an unbalanced mechanism on the development of the manufacturing sector.The effect on property right reform on industrial interaction is very obvious on the national and provincial level, but the effect on the provincial-municipal level has shown a negative reaction. This shows the necessity and importance of the property right reform in the industrial interaction, further highlighted in the period of the system changes. On the other hand it also shows that our country still remains to deepen and strengthened the reform of property right system on the municipal and county level.Opening factor at all levels showed significantly positive effect. Although the policy of opening to the outside world brought certain crisis to industry interaction development, in general has injected new vitality, stimulating the interactive development. Including the reform of fiscal decentralization and the government size, the role of government centralization characteristics for industry interactive development is not clear, probably as the "double-edged sword" dual role.