The Analysis On The Interactive Development Of Producer Services And Manufacturing Industry In Shandong Province

As an important part of new service industry, producer services has experienced a rapid and remarkable growth in western economies since 1980s. On the one hand, producer services separates upstream and downstream links such as raw material procurement and transportation?product design?production management?product sales etc. from producing process, so it can deepen the industrial division of labor and promote the development of modern agriculture, manufacturing and modern service industry productivity based on advanced technologies. What's more, the development of producer services, especially the advancements in transportation, storage, computer and communication industry, save the cost of industry production relying on the deeper social division of labor. It can be said that the developments of producer services improve the environment of economic development, promote the production efficiency and service efficiency, and have become the most important driving force in developed countries during post-industrial period.Since reform and opening-up, Shandong has maintained a rapid growth in economy and has become an important economic province in China with the advantage of large population and rich resources. As pillar industry, manufacturing industry has supported the industrialization and modernization of Shandong's development for many years from the GDP contribution rate, the employment contribution rate and other aspects. However, under the impact of the international financial crisis and the information age, Shandong manufacturing industry has gradually showed many drawbacks. Enterprises lack of motivation of independent innovation; serious resource consumption; serious environmental pollution; unreasonable product structure such as huge resource-processing-products with low-added value?little high-end products due to the lack of technology and talents. Most manufacturing industry remain in Industry 3.0,even Industry 2.0. As the world enter Industry 4.0, Shandong manufacturing industry must seek a new, sustainable growth point, and promote the manufacturing industry to quality?intelligence and informatization. How to draw lessons from the experience of the transformation of manufacturing industry in developed countries, how to develop and utilize productive service industry, so as to promote the improvement and upgrading of the service manufacturing industry, and achieve the diversion form "Big-Manufacturing Industry-Province" to "Strong-Manufacturing Industry-Province ", are major issues of concern in Shandong Province.Based on combing the research both at home and abroad, this article explains the interaction mechanism between producer services and manufacturing industry with perspective from industrial structure evolution, industrial division and product creativity. Research analysis the characteristics of producer services in Shandong province by vertical comparison among Shandong, Guangdong, Zhejiang provinces mainly from the perspectives of development speed, scale and fixed investment, so as to measure the status of the integration of producer services and manufacturing industry in Shandong Province. Panel data models containing three controlled variables (organic composition of capital, educational level of label force and FDIR in manufacturing industry) are used to take empirical test on the effect to producer services and its sub sectors to manufacturing industry. Finally, according to the actual situation of the development of Shandong Province, this research has put forward the policy recommendations to speed up the development of producer services in Shandong province from the perspective of guide of the government, industry association effect, service outsourcing and human capital investment, as long as promoting the interactive development of producer service and manufacturing industry in Shandong province.