Research On The Interaction Relationship Between Advanced Manufacturing And Producer Services In Nanjing

Advanced manufacturing is a new emerging concept in recent years, which combines hightechnology and sophisticated character. That is the reason why the development of advancedmanufacturing would be a practical way to promoting the transformation and upgrading of domesticmanufacturing industry. Producer service is one of the main development directions of modern serviceindustry. It has a close relationship with manufacturing sector and plays an important role in theprocess of transformation and upgrading of the manufacturing industry. So it is necessary to study thecorrelation between advanced manufacturing and producer service. The research will help understandand make use of industrial relations and law of development, as well as prompt the development ofadvanced manufacturing and producer service. Basing on the industrial research report which iswritten by the counselor court of Nanjing government, this article makes an in-depth study on theinteractive development relationship between the advanced manufacturing industry and the producerservice in this area.(1) On the theoretical level, many experts studied the relations between manufacturing andproducer service. Few of them studied the relationships of advanced manufacturing and producerservice. Basing on these studies, the paper defines the concept of advanced manufacturing andproducer service in this article. At the same time, the paper also summarizes the main analysismethods which are used to test and verify the interactive relationship among industries from formerscholars’ achievements.(2) Based on relatively detailed statistical data, this paper makes an analysis about the currentsituations of producer service and the advanced manufacturing from various aspects in Nanjing. Atfirst, this paper respectively chooses the industries of the advanced manufacturing and the producerservice in Nanjing. Then the results show that: the development of producer service is in its fancy andlags behinds the advanced manufacturing, which restricts the interactive development between them.Thirdly, the paper analyzes the output, employment absorptive capacity and scale of producer service.However, the producer service has enjoyed a rapid increase; it’s still in its infancy, which can’t matchthe development level of advanced manufacturing in Nanjing. Finally, the paper analyses theinteractive development of advanced manufacturing and producer service by using a real case andindicates that advanced manufacturing and producer service are the two subjects of interactive.(3) To investigate whether there has formed an interactive relationship between the advancedmanufacturing and producer service in Nanjing and if so, which stage it has been, based on the former theoretical analysis and under selected times series, a dynamic econometric analysis is made on theadvanced manufacturing and producer service under the methods of co-integration test combined withGranger causality test and impulse response function and variance decomposition analysis based onVAR model. The results reveal that the advanced manufacturing is a great driving force on producerservice while the latter has not promoted the former greatly, and the interaction between them is in anembryonic stage.