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A Study on the Role of Producer Services to Manufacturing in Hunan Province

Author: JiangXiaoJing
Tutor: CaiDeRong
School: Hunan University
Course: Industrial Economics
Keywords: Productive Service Manufacturing Industry Value-added Panel Data Models
CLC: F427;F224
Type: Master's thesis
Year: 2008
Downloads: 411
Quote: 4
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Abstract


With the process of industrialization of a new type speeding up, the competition of manufacturing industry has been very fierce. In this situation, the producer services which run through the production process has become the main source of value-added and product differentiation. At the same time, the functions of producer services with lowering trading costs and increasing the economic value-added have become an important factor of promoting the upgrading of the manufacturing industry.At the beginning, this paper introduces the concept and characteristics of producer services. Then, analyze the process of value formation and value-added based on theory of surplus value. Producer services sector, working as a carrier of high-level complexity of the human labor, has its own characteristics of the value formation. The producer services have the major impact on manufacturing sector with a value-added effect. We can improve the value level of manufacturing sector through the usage of producer service. So, the development of manufacturing industries can be promoted. Then, we analyze the status quo of producer services and manufacturing in Hunan Province. In the part of empirical analysis, this article divides the 28 manufacturing industries in Hunan Province by elements of the intensity into three types. On the basis of this, use panel data model to analyze the different effect of producer services on manufacturing sector. The results show that the producer services in Hunan Province have an impact on the manufacturing sector in general, storage and transportation and traditional postal services play an most important role among the producer services; and different types of manufacturing sectors have different needs for the producer services, such as storage and transportation and traditional postal services play the larger role in the labor-intensive manufacturing industries; scientific and technical services play the larger role in the technology-intensive industries; and financial services promote the capital-intensive industry at most.Through this analysis above, the article concludes the policy proposals with how to promote development of the producer services sector to increase the level of development of the manufacturing industry.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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