Analysis On Causes Of The Development Lag Of Producer Services In China

In demand factors,the existing literatures on the interpretation of the development lag in producer services in China focus on the inhibitory effects of internalization and processing trade exports.But there is no empirical analysis of the internal problems,so,this paper is to fill the gap,and attempts to take perceptions of the development lag of producer services in China one step further,and then,deepen the understanding of price suppression as a factor which leads to the same result.This paper sums up a "scale effect",namely promotions to producer services caused by the expansion of market scope because of the expansion of scales of the industrial and processing export trade,and puts forward an unified perspective of "internalization-scale effect",then makes an empirical analysis of comprehensive effect of the both.According to statistical standards,industrial enterprises are divided into three categories of state-owned,private and foreign investment in accordance with the nature of ownership.Based on the analysis of the background of the planned economy in China and the lack of incentive mechanism of ownership within the state-owned enterprises,we guess,the more share it has in the industry,the lower share producer services has in the GDP;But private enterprises are more likely to purchase producer services via a way of market transaction,so it has a positive correlation between them;Due to the existence of various influence mechanism,the relationship of foreign investment enterprises and producer services is not easy to light off.Empirical result shows that,the share of state-owned enterprises and private enterprises in the industry and the development of the producer services are significantly positively correlated,but a complicated relationship for foreign investment enterprises.It means that the inhibitory effect of internalization does not account for the development lag of producer services in China,just because the empirical result is not consistent with the theoretical analysis.After reexamining the nature of the so-called development lag of producer services,this paper puts forward an extended analysis framework of "internalization-scale effect-price suppression",believing that the basic reason for the development lag of producer services lies in the low level of the quality and the arrangement of producer service in the international industrial chain.At last,there is a brief analysis of the meaning and mechanism of price suppression.