Relationship Between Manufacturing And Producer Services In China

With the continuous development of economic globalization, the producer services have got more and more attention as a power to promote industrial upgrading and economic growth. In terms of industrial departments, the relationship between manufacturing and producer services has become a research focus of scholars at home and abroad. Foreign scholars general think manufacturing and producer services are interactive, mutual fusion and promotion, which was the conclusion under the background of mature markets in developed countries. And this conclusion does not apply to China obviously. Chinese producer services are at an early stage and its development lags behind the manufacturing. What’s more, regional economic development is at different level, which cannot be treated as the same. Therefore, the research on the different relationship between manufacturing and producer services basis on our Chinese economic level has a practical significance.This paper constructs theoretical model by concluding the influence paths of manufacturing and producer services on the basis of related literature in order to lay a theoretical foundation for subsequent study. It researches the economic differences of different cities by the cluster analysis. Through this method, we can classify the municipal areas and analysis the relationship between manufacturing and producer services according to the different categories by unit root test, cointegration test and granger causality test in order to find the differences and causes.The empirical analysis result shows that the cities can be divided into five categories according to different development levels of manufacturing and producer services. In the first and second cities, the relationships between manufacturing and producer services are mutual promotion and coordinated development. In the third cities, the relationship between manufacturing and producer services is one-way, namely only manufacturing pulls producer services development to a certain extent. In the fourth and fifth cities, the interaction between manufacturing and producer services is very small and they are further developing based on themselves. For different cities should be put forward targeted suggestions. The first and second cities should be further deepen the fusion degree between manufacturing and producer services, the third cities should be developed by manufacturing high-end driving the development of producer serviceseffectively and the fourth and fifth cities should be further developed based on the existing of manufacturing and producer services. Through the adoption of more targeted suggestions, we hope they can further promote manufacturing and producer services’ development of each city and provide references for forcing market economy to develop balanced and upgrading the industrial structure.