An Empirical Research Of The Impact Of Producer Services To Upgrade The Manufacturing Industry In Jiangsu

Producer service and manufacturing are closely connected; producer service hasexistence in manufacturing of every sector, and puts its rich human capital and intellectualcapital into manufacturing. And it plays an important role in upgrading the manufacturing.Therefore it appears to be necessary to research the impact of producer service to upgrade themanufacturing in Jiangsu.First, this paper has a theory analyzes of the impact of producer service tomanufacturing’s upgrade. In this article, studies the influencing factors on the manufacturingindustry upgrade of producer services through the innovation of the producer services withhigh capacity, ability of develop independent property rights, financing capacity, high savingresource allocation, and a higher level of marketing services; And studies the dynamicmechanism of producer services affects the upgrading of manufacturing from thespecialization of labor division, the value chain promote and the sustainable development inthe manufacturing inductry; And gets the path of the impact of producer service to upgrade themanufacturing are:“reduce the cost of manufacturing”,“promote the innovation ofmanufacturing”,“increase the differentiation in product of manufacturing”Through the analysis of situation of manufacturing in Jiangsu, we find that themanufacturing sector’s scale continues to expand, and its economy continues to develop, and ithas the dominant position in the industrial economy, and its structure has been adjusted. Butthere are still some problems such as the unbalance regional development, lack of coretechnical talent, shortage of the innovation funding and its single source, has low percentageof patent for invention and weak innovation ability, engaged in the processing trade and theway of OEM production and at the low position in the world value chain. Through the analysis of situation and problem of producer service in Jiangsu, we find each producer servicesindustries continue to grow, it occupies an important position in the tertiary industry, and theproportion of the total production in the region of Jiangsu Province is also rising. But there isstill a low level of development, unbalanced regional development, uneven development instructure, and the existence of entry mechanisms and other issues. By the analysis of thesituation of the impact of Jiangsu productive service industry to manufacturing industry’supgrade, we find that transportation and wholesale and retail trade of Jiangsu province play amore obvious role in promoting upgrade of manufacturing industry, and the financialinsurance industry, scientific research and comprehensive technical service have a little affectto upgrade the manufacturing.On empirical research, this paper takes Jiangsu province’s producer services andmanufacturing as the research object, based on time series data, has empirical research on theimpact of Jiangsu producer’s whole service industry and its subdivision industry to upgradethe whole manufacturing industry, labor-intensive manufacturing, capital-intensivemanufacturing and technology-intensive manufacturing, and has comparison analysis ofthese measurement results. Through the empirical analysis, we found that the whole serviceindustry has a significant role in promoting the upgrade of the overall manufacturing,labor-intensive manufacturing, capital-intensive and technology-intensive manufacturingindustry. From the sub-sectors of producer services, only the transportation warehousing andPosts wholesale, retail and catering play a significant role in promoting the upgrade for alltypes of manufacturing, while finance and insurance, real estate, scientific research andcomprehensive technical service did not pass the test of significance.Finally, based on the findings, this paper proposes to develop producer services in JiangsuProvince, promote manufacturing upgrade, and promote the integration of producer servicesand manufacturing. And give recommendations from the government level, the industry leveland the enterprise level based on research findings.