Producer Services And Economic Growth

Thanks to the reform and opening up policy, China’s economy develops rapidly and leaps to the forefront of the world in the respect of economic aggregate.But the per capita economic indicators have lagged far behind. In the new period of reform and development, it is meaningful to explore how to promote the healthy development of economy. With the gradual weakening of the competitiveness of traditional manufacturing industries, economic development has become dependent on the service industry more and more. Among service industry, the productive service industry which has the characteristics of technology intensive is especially significant to the economic growth. The development of producer service is not only the self-improvement of the third industry, but also provide the talent, technology for the upgrading of the internal structure of the manufacturing industry. The plan of German industrial 4 and U.S. manufacturing return are directed at the intelligent manufacturing. To achieve intelligent development, manufacturing industry must rely on producer services. So this paper researches on the influence of productive service on economic development from the angle of industrial structure upgrading.After introducing the present situation of producer service and manufacturing industry, this paper overviews the intelligent manufacturing and finds:although China’s manufacturing industry has many problems, but in the face of intelligent manufacturing we have more opportunities. Firstly, China has the advantage in the information industry that can compete with the developed countries. When the global network is almost occupied by the western world, we have Baidu, micro-blog, renren.com, Youku video, Taobao, Jingdong and so on that can compete with YouTube Face book, eBay and Amazon. Secondly, China is the only one in the world that has the entire industry categories and sound production supply chain. Producer services can promote the development of intelligent manufacturing through supplying technology, design, product development and other specific tools. The realization of intelligent manufacturing industry can change the traditional manufacturing mode and promote economic growth.Through fixed effect variable coefficient panel data model, this paper researches the relationship among the production service industry, the internal structure of the manufacturing industry and the economic growth. Results show that the impact of producer services on the optimization of the internal structure of manufacturing industry is very significant, especially in the eastern region; Technical factors and the level of opening to the outside world is the driven power to East and whole country’s industrial upgrading; government support factors are mainly concentrated in the central and western regions. In addition, the development level of producer services and the internal structure upgrading degree are powerful driving force to China’s economic development. Productive service industry, industrial restructuring, intelligent manufacturing are the new power that support economic development.Producer service industry and the upgrading of the internal structure of the manufacturing industry, is a powerful driving force for economic development in the future, which has great significance to economic growth. We should improve the development environment and the quality of development, increase the opening to promote the development of the service industry, accelerate the upgrading of the internal structure of the manufacturing sector.