Research On The Relationship Between Producer Services And Manufacturing Industry In The Central Region Of China

Since the1980s, China has become the world’s manufacturing superpower afterthree decades of development. With the development of the manufacturing sector,producer services which is the core components of the knowledge-intensive has alsobeen rapid development. Taking the central region for example, the Governmentclearly points out that we should vigorously develop modern manufacturing andservice industries, to provide policy guidance to the rise of the central region.Therefore, the study of the central region of the two industries association and theinternal restructuring of the two industries would have important theoreticalsignificance.First, the paper describes the status of research relationship between theproduction service sector and manufacturing and meanings, and proposesmanufacturing value chain theory, transaction cost theory of producer services andinnovative theory the two industries. Secondly, based on the six central provinces ofthe two industries situation, using2007input-output data of the central region, therelevant indicators are calculated and compared to further analyze the association ofproducer services sub-sectors and manufacturing. Thirdly, by selecting the foursub-sectors of producer services and manufacturing group of five20-year panel datato establish a dynamic panel data model to further test the applicability of the theory.Finally, it is concluded that producer services cannot fully promote the developmentof manufacturing, and the internal structure of producer services is unreasonable. Andin accordance with the conclusions, it makes relevant policy recommendations aboutdevelopment.