Study On The Development Of Manufacturing Service And The Upgrading Of Manufacturing In Luoyang

The development of manufacturing service is an important symbol to measure acountry or a region’s economic and social development lever.It has been an emergingstrategic industry of the country in the future.The economic development history ofdeveloped countries has shown that the transforming and upgrading of manufacturingand the developing of manufacturing service are supplementary to each other.Thedevelopment of manufacturing service will decide the rising and falling and powerlevels of the manufacturing in a country or region.Promoting the development ofmanufacturing actively, driving transforming and upgrading of manufacturing andstriving for the speed and benefits through the structure optimization, have been thecommon goal of the various countries and areas all over the world,especially indeveloping countries and regions.As the old industrial base, the development of manufacturing service is one of theimportant option for the adjustment of industrial structure in Luoyang.Judging fromthe current reality, the reforming of manufacturing mostly focus on alleviating burdenson the manufacturing enterprises, which is the state-owned enterprises stripped ofsocial functions, resettde the laid-off workers and reformed the VAT, etc.. Thematerial effect is not obvious in the terms of promoting the development ofmanufacturing service.In the new period of development, how to play themanufacturing’s potential advantage fully in Luoyang, improving the competitivenessof industry and promoting the development of manufacturing service have become thefocus of economy in Luoyang.Based on the research of manufacturing service and the relationships withmanufacturing,this paper introduced the manufacturing service’s origin、development、 classification and the operating mode,and then it regarded themanufacturing service as an endogenous variable to build a two-sector model,whichincludes manufacturing service and manufacturing,on the basis of two departments model of Feder, then analyze the influence of manufacturing service and its fiveextension industries on the manufacturing bases on the data of luoyang from2001to2010.The empirical concluded that the development of manufacturing services canpromote the upgrading of manufacturing,the extension industries of manufacturingservice,such as the transportation, warehousing and postal and telecommunicationservices (TS), finance (WR), information transmission, computer services andsoftware industry, leasing and business services (LS),they played an actively role inpromoting the development of manufacturing,the finance was the most aggressive,andthe scientific research and technical services and geological KanZhaYe (SC) restrainedthe upgrading of manufacturing,etc.Finally,this paper put forward some relatedcountermeasures and suggestions on the basis of theoretical and empirical analysiswith the further combination of the manufacturing service’s situation at present inLuoyang.