The Metrology Analysis Of Influencing Factors Of Manufacturing PPI

In this paper, We study the effect of Labor costs, per capita capital and marketcapacity lead to PPI from the perspective of labor prices. The article study theproblem through classify three industries from a theoretical and empirical aspects. Wewant to be able to in-depth understanding of the problem.The first part analyses the background and significance of the topics and putsforward the problem studied in this article. Then introduces related price theory.Expound the role of cost, supply and demand factors to PPI theoretically.The second section describes the theoretical framework of this article, firstanalyzes the determination of the labor price and how to affect the supply curvesthereby affecting the price of the product; followed by analyzing the characterizationof technological change of the per capita level of capital (capital and labor input ratio)how to affect the price of the product.And then analyze the impact to product price ofchanges in market capacity prices.The third section describes the econometric model established in this paper, thenaccording to the characteristics of the data, the paper selectes panel data model,lastly,the paper classifys two industries: labor-intensive industries andcapital-intensive industries,and then analysizes the selected indicators of theeconometric model, and makes brief description of how to process the data.The fourth part is the empirical section of this paper. Firstly, using the panel dataregression method to analysize the overall manufacturing industry.The empiricalresults show that:the enlarged scale of demand and the increasing per capita capitalstimulate the price of PPI,and the increasing labor costs prevents the rising ofPPI.Then in accordance with the classification of the manufacturing industry, thepaper makes a regression analysis of labor-intensive industries and capital-intensiveindustries respectively,and the study results show: the enlarged scale of demandcontributes to the increasing of PPI,the labor costs represented by per captical and per labor compensition affects PPI in the different ways.