An Empirical Study On The Impact Of Producer Service On Total Factor Productivity In Manufacturing Industry

At this stage,China's manufacturing industry is facing the dilemma of the double squeeze of developed countries and emerging economies,the rapid decline of low cost advantages and the new competitive advantage has not yet formed a dilemma.The traditional manufacturing industry,which relies on investment and external demand,is becoming less and less competitive.How to effectively improve the total factor productivity of manufacturing industry and optimize the industrial structure has become an urgent problem to be solved.Along with the deepening of specialization,producer services will play its increased manufacturing technology and human capital density function,increase the added value of the products,reduce the coordination costs of each link in the production process,improve production efficiency,and become a new driving force for the growth of the manufacturing industry.The manufacturing industry in China should fully realize the characteristics of high value-added,high technology and high radiation of producer services.through using external specialization of producer services,Optimizing production structure and promoting efficiency.In this paper,based on factor inputs,we use the input-output data of 42 sectors in China in 2002,in 2005,in 2007,in 2010 and in 2012.Calculate the proportion of producer services in all intermediate inputs of the manufacturing sector to measure the level of investment in manufacturing services,Use DEA-Malmquist productivity index to calculate the total factor productivity of China's manufacturing industry.Different from previous studies,this paper takes into account the impact of industry heterogeneity,the manufacturing sector is divided into labor-intensive manufacturing,capital intensive manufacturing and technology intensive manufacturing.The static panel data model was constructed to examine the effect of the input of producer services on the total factor productivity of labor intensive manufacturing,capital intensive manufacturing and technology intensive manufacturing.The results show that the input of producer services affects the total factor productivity of different types of industries:Labor intensive manufacturing services investment rate increased by 1 percentage points per cent,will make the industry total factor productivity increased by 0.2564 percentage points.The results show that the input of producer services deepens the division of labor between the various departments of the labor-intensive manufacturing industry,reduces the coordination cost of each link of the value chain,and improves the total factor productivity.The impact of producer services on capital intensive manufacturing total factor productivity is positive,but this positive effect is not significant.The technology intensive manufacturing services investment rate increased by 1 percentage points per cent,will make total factor productivity decreased by 0.2894 percentage points.This is mainly because the technology intensive manufacturing industry for research and development,design,integrated technical services and other advanced production services outside of the demand can not be met.the choice of production organization mode of producer service internal crowding the manufacturing enterprises can be used to develop the production process,technical innovation,improve resource efficiency.According to the results of empirical analysis,this paper puts forward the following policy recommendations for the promotion of total factor productivity in the manufacturing industry.Government should improve the internal structure of producer services and strengthen the integration of producer services and manufacturing industry.