The Impact Of Producer Services’ Development On The Efficiency Of Manufacturing Industry In The Pearl River Delta Based On Spatial Econometric Models

Since the reform and opening，in the geographical advantages, cost advantages, under theaction of the policy advantages，the manufacturing of the Pearl River Delta has been rapiddeveloped. The Pearl River Delta has become the main manufacturing production base of Chinaand the world. However, in labor intensive development mode of the Pearl River Deltamanufacturing is no longer applicable to the international and domestic economic environmentchanges. Transformation and upgrading of the Pearl River Delta manufacturing is imperative.Transformation and upgrading of manufacturing essentially is the improving efficiency.Nowadays the impact of producer services’ development on the efficiency of manufacturingindustry is one of the hot topics of economic research. Producer services, which has thecharacteristic of high intelligence, under the action of social division of labor frommanufacturing. The fusion between manufacturing industry and producer services is more andmore closely, which has become one of the main ways for the main western developed countriespromote manufacturing efficiency and promote transformation and upgrading of manufacturingindustry.This paper try to research on the effects of producer services on the efficiency of themanufacturing industry in the Pearl River Delta. Firstly, the paper empirically examines spatialcorrelation of the efficiency of manufacturing industry in Pearl River Delta. Secondly, this paperapplying spatial econometric models empirically examines spatial spillover effect of producerservice industry on the efficiency of manufacturing industry. The empirical results show thatsignificant spatial effects exist in efficiency of manufacturing industry, and that producer serviceindustry can not only enhance the production efficiency of region manufacturing industry, butalso enhance peripheral region’s production efficiency of manufacturing industry by spillovereffect. In the end, this paper investigates the mechanism of producer advancing manufacturingefficiency based on model of mediating effects analysis by add two mediators: manufacturingindustries’ agglomeration and upgrade.