The Research On Interactive Development Between Producer Service And Equipment Manufacturing Industry In Jiangsu Province

As a large equipment manufacturing province, Jiangsu’s economy is in a critical period of transformation and upgrading on industrial structure. Since the reforming and opening, Jiangsu’s equipment manufacturing industry has made a great progress, but on the whole, it’s level of overall development, the level of innovation, and scientific research strength are still lagged compared to developed countries and regions. The manufacturing industry is still in the middle-to-low development level in a whole industry chain. Theoretically, we know that the industries’development are not isolated, instead, they are interrelated, interdependent and mutually reinforcing. Looking at the experiences on the domestic and foreign industries development: producer services can provide the middle investment rich in high value-added and high-tech to the equipment manufacturing industry; at the same time, the equipment manufacturing industry can provide a vast demand for producer services. So the research on interactive development between producer service and equipment manufacturing industry in Jiangsu province is very important for the transformation of the economic structure of Jiangsu Province and realize the new industrial society.Based on the actual situation of economic development in Jiangsu Province, this paper defines and classifies the producer services and equipment manufacturing industry first. Then the paper studies the interactive mechanism of interaction from the perspective of social division of labor and trading cost, value chains and ecological communities, and focuses on the promotion of productive service to the equipment manufacturing industry by mathematical analysis. Then the paper studies the development status of producer services and equipment manufacturing industry in Jiangsu province from the aspects of overall development, the internal structure, employment structure and investment structure. This paper establishes the index system of producer services and equipment manufacturing industry, the paper conducts empirical analysis to the mutual development in short and long term using gray correlation analysis from the perspective of couple and establishing VAR model. Concluded that:Coupling relevance between producer services and equipment manufacturing industry in Jiangsu Province is relatively high, but in recent years the relevance have shown a downward trend; Both industries exist long-term stable equilibrium relationship in the long term, however the level of development of producer services in Jiangsu Province is relatively low so hampers the development of the equipment manufacturing industry and equipment manufacturing industry has stimulating effect on producer services more obviously, leading the relevance in primary stage of interactive development. Finally, put forward policy recommendations to promote producer services and equipment manufacturing industry to achieve positive interaction development in Jiangsu Province based on earlier research.