Research On Factor Intensity Of Producer Services In Beijing And International Experience Learning

Producing service is the core driving force of economic growth, it’s not only the catalyst of improving the productivity of other industries, but also an important part of economic growth of developed countries and regions. In 2003, officials in Beijing became aware of the importance of producing service. Although it’s the mainstay of Beijing’s economic output, but the gap with developed countries and regions remain large. As a consequence, Beijing has been increasing its focus and research on producing service on a yearly basis, and striving to raise producing service’s GDP proportion of Beijing city to around 53%. Under the background of development of the producing service in Beijing, the author makes an effort in this paper to classify the producing services in Beijing into 5 categories, which are capital-intensive, labor-intensive, technology-intensive, capital-technology-intensive and labor-technology-intensive, basing on the intensity of different factors. The reason of the classification resulted from comprehensive analysis of two aspects. Firstly, with the help of the advancement of all-factor productivity computing technology, the author made an analysis of which factor contributes to the growth of each producing service industry by looking into the growth proportion of technology, capital and labor. Secondly, the author made an analysis of which factor input efficiency is higher by computing the elasticity of capital, labor against output, and influence of technology advancement on output. It is found that the producing service in Beijing is in the transforming phase of high-speed development, the scale of the industry is large, but the efficiency and sustainability are low. The author further made a research into the developed metropolitan—Tokyo, and found that the GDP proportion of producing service in Tokyo is around 75%, and the type of its producing service is a stable labor-intensive one. By studying the mature development model of Tokyo’s producing service, the author found the clear transforming direction of Beijing’s producing service, and proposed many advised on the aspects of supporting Beijing’s producing service and factor input etc.