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The Theory and Empirical Research on the Producer Services Promoting Economic Growth in China

Author: LiuZuoJun
Tutor: ZhangYaBin
School: Hunan University
Course: International Trade
Keywords: producer services economic growth mechanism analysis the varying coefficient model
CLC: F124;F224
Type: Master's thesis
Year: 2008
Downloads: 570
Quote: 4
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Abstract


As an important component of the modern service industry, the producer services have a growth rate which is above the average level of the service industry, and that have great contribution to the economic growth of China. Through the theoretical mechanism research on producer services, we come that: the producer services can deepen the human capital, knowledge capital, reduce transaction costs, deepen division of labor, nurture industries differentiated competitive edge, strengthen independent R & D and innovation capability, develop manufacturing and other support services sector to promote industrial upgrading and enhance the competitiveness of industries. So far, we can see that this paper can provide a lot of recommendations to our economic growth both theoretically and empirically.We select 19 indicators such as the per capita GDP, the level of urbanization, the added value of producer services, and use principal component analysis on China’s producer services to evaluate the level of its development. The results show that China’s producer services are on the very uneven levels of development. The differences in different levels of development among various provinces cannot be ignored. Therefore the government should take corresponding measures to promote those balanced development.We use Variable Coefficients and Fixed-Coefficient model to study the relationship between producer services and economic growth in China by a panel data which is composed of 31 provinces and municipalities of China in 1997-2006 after analysing the producer services’ development level, and the results show that the producer services played an important role in economic growth of China. Through technical progress and innovation, deepening the division of labor, increasing production efficiency, industrial clusters, improving local investment environment and interacting with industry and other services, the producer services can promote China’s economic development jointly. The empirical results also show us some ways to deal with the problems which is brought by producer services during its way to promote our economy.

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