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The Analysis on the Interactive Development of Producer Services and Manufacturing for Sichuan Province

Author: LinKunPeng
Tutor: YaoXing
School: Southwestern University of Finance and Economics
Course: International Trade
Keywords: Sichuan Province Producer Services Manufacturing IndustryInteraction
CLC: F427
Type: Master's thesis
Year: 2013
Downloads: 93
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Abstract


In the end of last century, China gradually realized the problems in the process of industry development, and began to stress the industrial structure transformation and development services to solve these problems. In the new century, the world tends to transform from "industrial economy" to "service economy" and upgrade industries. The governments begin to focus on the producer services which play a very important part in upgrading industries. Our government also highlights the development of producer services in the five-year plan outline. It’s visible that research on producer services is very important to the transformation from "industrial economy" to "service economy".As the economic center in southwest China, Sichuan province has made considerable development of the manufacturing industry. At the same time, disadvantages also gradually appeared in the development of manufacturing development, such as pollution, environmental damage, low value-added, massive consumption of resources which limit the further development of Sichuan economy.Therefore, Sichuan province has to transform and upgrade economic structure. Sichuan provincial government also focus on the producer services which play a very important part in upgrading industries. To coordinate the relationship between manufacturing and producer services is the focus of the current development.This paper conducts the research on the relationship between the producer services and manufacturing industry in Sichuan province to find out the instinctive relationship between them. On the base of the finding, we put forward some suggestions and strategies to integrate these two industries and accelerate industrial upgrading process. This paper includes five parts.Part one is the openness of this paper. It introduces research background, research objective, research train of thoughts and its weak points and possible theory innovations etc. Part two introduce the overseas and domestic research status of the relationship between the producer services and manufacturing industry. There are four main points:demand theory, supply theory, interaction theory and merging theory. According to the need and the actual situation of Sichuan province, this paper only present interaction theory and merging theory.Part three is qualitative research of this paper. Using Sichuan province’s input-output table in2002and2007, this part calculate the intermediate demand rate, intermediate input rate, sensitivity coefficient and influence coefficient between the producer services and manufacturing industry. From the calculation, we found that the interaction between producer services and manufacturing industry in Sichuan province is not sufficient. Finally we put forward hypothesis of this paper according to the results of this section.Part four is the Empirical Analysis of this paper. We make use of two equation derived from the Cobb-Douglas function and deal with a large amount of primitive trade data in2000-2011with them. The regression results show that the producer services and manufacturing industry promote each other which is very significant. But the interaction between producer services and manufacturing industry in Sichuan province is not sufficient, which is in accord with the results of part three.Part five is the conclusion of this paper. We consider that the transportation and warehousing, wholesale and retail trade, finance insurance and scientific culture education career are important department of producer services which is critical to the manufacturing industry in Sichuan province. We must focus on these four departments to stimulate the development of other industry and forming positive interactive between producer services and manufacturing industry.

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