The Leading Role Of Producer Services On Manufacturing Upgrade

Since entering the new century, in the long term, the world economy is in complexand volatile international environment.As the impact of regional factors and politicalfactors, the world’s major economies are showing decline at different levels. As emergingeconomies, China also faces a serious topic that is how to make economic steadydevelopment. China, as a developing country, bears one fifth of the world population, thehealthy and stable growth of China’s manufacturing is related to national economy andpeople’s livelihood. With the demographic dividend subsides and resource andenvironmental constraints seriously, how to upgrade the traditional manufacturing andcontinue to maintain stable growth, will be the key problem of China’s manufacturingmust be handled well. Producer services as a big categories of services, can promote thetransformation and upgrading of manufacturing. Producer services like a catalyst formanufacturing production, has an irreplaceable role in the process of upgrading themanufacturing. So this paper research the producer services play an important role inpromoting the manufacturing to upgrade through the analysis of sample.This paper combines theoretical analysis with empirical analysis and establishestheoretical perspective on the basis of summarizing existing research conclusion.Through establishing mathematical model and using the Pan Yangtze River Deltaregion’s panel data from2004to2011, this paper do empirical research. On the basis ofverifying the Pre-theoretical research about the producer services effectively upgradingthe manufacturing, based on the identification of the effects of a further paper researchhow the six sub-categories of producer services to affect the development ofmanufacturing. Thus put forward the targeted conclusions and policy suggestions.