The Leading Role Of Producer Services On Manufacturing Upgrade

Producer services are supporting services directly related to the manufacturing, have a high degree of industrial linkage, knowledge intensive and innovation strong sexual characteristics. Producer services developed independently from the inside sector of manufacturing industry, throughout all aspects of production in the manufacturing sector, will help to ensure the continuity of the industrial production process, to promote industrial upgrading. At the macro-policy level, since the "Eleventh Five-Year" our government has laid a greater emphasis on productive services in the national economy,"Twelfth Five-Year Plan" proposed a series of policies and proposals to expanse financial services industry, vigorously develop modern logistics industry, foster the growth of high-tech services, standardize and enhance the business services. Therefore, the study of producer services to the leading role of the manufacturing sector has important theoretical and practical significance.First of all, this paper classified research on domestic and foreign literatures, analyzed the connotation and composition of productive service industry, discusses the productive service industry to drive the upgrading of the manufacturing industry of the channel and mechanism. Secondly, this paper draws on Feder’s two-sector model on export and economic development, combining the specific issues to adjust and expansion the old model, eventually, Producer services and manufacturing are incorporated into the two-sector model theory system, theoretically clear the leading role of the producer services on manufacturing upgrade. Furthermore, through a dynamic panel model, an empirical test of the dynamic relationship between the producer services and manufacturing industries with provincial panel data from2004to2010, found that producer services the manufacturing sector has obvious leading role, the estimated results of the regional grouping and six service industry segments grouped ensure the empirical research has a soundness conclusion.