Interactive Relation Between Producer Services Of Central Cities And Manufacturing Industry Of Suzhou

With the arrival of service economy era, service industry especially producer services rapidly developes which has drawing lots of attention as well as the relationship between producer services and manufacturing industry. Based on the existing research, this paper investigates the interactive relation between producer services of the central city and manufacturing industry of the peripheral city in order to find out the industrial linkage between them from the perspective of specialization of industrial chain that also combines with the Central Place Theory. We choose Shanghai, Nanjing and Suzhou which are typical cities in Yangtze River Delta as specific research objects.First, we study the industry development of Shanghai, Nanjing and Suzhou qualitatively by analyzing economic statistics. Second, respectively set up VAR models to test the long-term stable relationship between the manufacturing industry of Suzhou and the producer services of Shanghai, Nanjing. Third, based on the three-sector economic growth model of Romer, we respectively build up simultaneous equations to empirically analyze the interactive development between manufacturing industry of Suzhou and the producer services of Shanghai, Nanjing. It shows that there is an interactive pattern between them, but the interactive effects are unequal, which is more significant from Suzhou to Shanghai, Nanjing. Besides, different producer service sectors show different interactive patterns. Last, give some reasonable advice.