Study On The Influence On Producer Service On Automobile Manufacturing In Chongqing

Producer service, the supporting industry of manufacturing, is used by producers of other goods and services as intermediate input service. Along with the work of socialized production being divided more and more detailed, producer service gets out from the manufacturing industry and develops to service trade which has its own independent modality. Human capital and knowledge capital are the main inputs of productive service and productive service supplies manufacturing with human capital and knowledge capital in the form of service. That way promotes the productivity of manufacturing and becomes a key to the process of national economic development. According to the industry history of western developed countries, producer service has played an important role in the whole process of economic development. It effectively promotes the level of economic development of the western countries and is significant to the growth of manufacturing. Chongqing, as the central city of west, its economy develops in unprecedented rate, following with the further implementation of western development. Under policies, a large number of eastern coastal enterprise migration to inland. Besides, as the base of inland export commodities processing, and base of important national modern manufacturing industry, and base of high-tech industry, and base of industrialization of scientific researches in upstream region of the Yangtze River, Chongqing has rich industrial foundation and a strong comprehensive ability. Since the reform and opening up, producer service and automobile manufacturing industry in Chongqing developed rapidly. However, comparing with those in developed eastern region, the two industries still have problems of small scale, low degree of agglomeration, low industrial structure, low ability of technology innovation and do not have enough integration between each other. These problems directly restrict the development of economy and the process of industrialization. Therefore, studies on the influence of producer service on the development of automobile manufacturing industry contribute to understanding the relationship between the two industries. So then to clarify the thinking of development of producer service in Chongqing. That has great significance for the promotion of automobile manufacturing industry and the economic development of Chongqing.This paper aims at studying the producer service whether or not impact on automobile manufacturing, thereby to give suggestions pertinently to promote the former driving the development of the latter. It includes three main aspects:(1) Analysis of the status of the producer service in Chongqing. On the basis of defining the definition and classification of producer service, it gets data from the Chongqing statistical yearbooks and makes descriptive statistical analysis from the whole producer service, subdivision industry and employment absorption capacity, respectively. (2) Qualitative analysis of the influence of Chongqing producer service on automobile manufacturing. It analyzes firstly the development of automobile manufacturing compared with that of different types of enterprises, and secondly every aspect that producer service may affect the automobile manufacturing, and lastly the possible relationship between the two from statistics. (3) The empirical study of the impact. This paper constructs an empirical analysis framework, including model selection, data selection and variable inspection etc. It demonstrates the relationship between these two industries, to make verification whether the producer service impact the automobile manufacturing as expected.The conclusions of this paper are as follows. (1) The producer service of Chongqing still takes up a low proportion of GDP. Its added value of producer service is growing rapidly, from 56.6 billion yuan in 2005 to 235.406 billion yuan in 2012. But it accounts for a low proportion of GDP. The proportion in 2005 is 16.35%, and increase to only 20.63% in 2012. The growth is very slow. (2)The effect of the producer service absorbing labor force is not obvious. The proportion of its added value increases from 39.36% in 2005 to only 52.38% in 2012, but the ratio of its employees in the whole service increases from 14.81% to 19.36%, which shows a low percentage and slow growth and indicates the union spacious effect of absorbing labor force. (3)The Chongqing producer service has a positive influence on automobile manufacturing and the influence is significant. The output elasticity of producer service on automobile manufacturing is 0.40932, which means whenever the added value of the producer service increases by 1%, the contribution to the output of the automobile manufacturing is 0.40932%.