Effect Of Producer Services On Manufacturing In Fujian Province

Fujian Province is in the stage of rapid and deepening development of industrialization. Manufacturing is the strong point of industrialization and also a supporting industry for the national economy in Fujian Province. Currently, Fujian Province is stepping up to build an advanced manufacturing base, regarding "accelerating the development of producer services"as one of the priorities of the construction of an advanced manufacturing base. Producer services transfer knowledge and technology into the production process of manufacturing, improving independent design, innovation and creativity capability, enhancing product differentiation, core competitiveness and productivity for manufacturing. It’s no doubt that producer services’function of adding value and improving efficiency is critical for upgrading manufacturing. In addition, by reducing transaction costs, producer services promote social division of labor and strengthen the collaboration between different producers. All these have spillover effects on the manufacturing. Therefore, defining the effect of producer services on manufacturing in Fujian Province and discussing factors enhancing spillover effects is actually significant to accelerate the building of an advanced manufacturing base and promote development of the national economy in Fujian Province.This study takes producer services and manufacturing in Fujian Province as the research object, applying theoretical and empirical methods, and makes a thorough research on the influence of producer services to the manufacturing in Fujian Province. Firstly, based on the research background and significance, this paper summarizes research situation and extracts the content of this study. Secondly, based on relevant theories, this paper explains the influence of producer services to manufacturing, defining the spillover effects. In addition, from two aspects of self-enhancement and external enhancement, this paper discusses the factors enhancing spillover effects and proposes theoretical assumptions. Thirdly, this paper analyzes the current situation of producer services and manufacturing in Fujian Province in order to provide a realistic basis for following discussion of the producer services’spillover effects. Fourthly, applying input-output method and cointegration test, this paper analyzes intermediate demand of manufacturing for producer services and long-run equilibrium relationship between producer services and manufacturing. Constructing econometric models, this paper examines the factors enhancing producer services’spillover effects from two aspects of self-enhancement and external enhancement. Lastly, from the producer services, industry linkage and external environment three perspectives, this paper proposes related countermeasure for enhancing producer services’spillover effects in order to provide some reference,thus making producer services in Fujian Province serve the manufacturing better.