The Relationship between Producer Service and Local Manufacturing Industry: Empirical Evidence from Shanghai
ABSTRACT
Previous studies suggested that the development of producer service resulted from manufacturing outsourcing. On the other hand, competitive producer service can promote the progress of manufacturing industry. Theoretically, correlation may exist between them. According to co-integration theory, this paper empirically tests the time series data col-lected from both producer service and manufacturing industry in Shanghai, indicating that co-integration does exist between producer service and local manufacturing industry. Empirical results of this paper partially support the conclusions of prior studies addressed above.
Previous studies suggested that the development of producer service resulted from manufacturing outsourcing. On the other hand, competitive producer service can promote the progress of manufacturing industry. Theoretically, correlation may exist between them. According to co-integration theory, this paper empirically tests the time series data col-lected from both producer service and manufacturing industry in Shanghai, indicating that co-integration does exist between producer service and local manufacturing industry. Empirical results of this paper partially support the conclusions of prior studies addressed above.
KEYWORDS
producer service, manufacturing industry, co-integration testing, empirical analysis, shanghai
producer service, manufacturing industry, co-integration testing, empirical analysis, shanghai
Cite this paper
nullS. CHEN, J. LI and M. JIA, "The Relationship between Producer Service and Local Manufacturing Industry: Empirical Evidence from Shanghai," Journal of Service Science and Management, Vol. 2 No. 3, 2009, pp. 209-214. doi: 10.4236/jssm.2009.23025.
nullS. CHEN, J. LI and M. JIA, "The Relationship between Producer Service and Local Manufacturing Industry: Empirical Evidence from Shanghai," Journal of Service Science and Management, Vol. 2 No. 3, 2009, pp. 209-214. doi: 10.4236/jssm.2009.23025.
References
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[1] H. L. Greenfield, “Manpower and the growth of producer services,” Columbia University Press, New York, 1966. [2] J. W. Harrington and J. R. Lombard, “Producer-service firms in a declining manufacturing region,” Environment and Planning A, No. 21, pp. 65-79, 1989. [3] W. Stull and J. Madden, “Post-industrial Philadelphia: Structural changes in the metropolitan economy Philadelphia,” University of Pennsylvania, 1990. [4] H. C. Browning and J. Singelmann, “The emergence of a service society,” National Technical Information Services, Springfield, 1975. [5] J. Howells and A. Green, “Location, technology and industrial organization in UK services,” Progress in Planning, Vol. 26, No. 2, pp. 83-184, 1986. [6] P. W. Daniels, “Service industries in the world economy,” Blackwell Publishers, 1993. [7] J. Tschetter, “Producer services industries: Why are they growing so rapidly?” Monthly Labor Review, Vol. 110, No. 12, pp. 31-40, 1987. [8] C W. J. offey and A. S. Bailly, “Producer services and flexible production: An exploratory analysis,” Growth and Change, Vol. 22, No. 4, pp. 95-117, 1991. [9] P. W. Daniels, “The geography of services,” Progress in Human Geography 9, pp. 443-451, 1985. [10] W. R. Goe, “Producer services, trade and the social division of labor [J],” Regional Studies, No. 24, pp. 327-342, 1990. [11] W. J. Coffey and J. J. McRae, “Services industries in regional development,” Institute for Research on Public Policy, Montreal, 1990. [12] C. Q. Guo, “Evolution of manufacturing model and tendency of manufacturing development, doctorate forum of Anhui manufacturing development,” Hefei University of Technology Publishing House (in Chinese), 2004. [13] H. G. Grubel and M. A. Walker, “The Canadian service industries [M],” The Fraser Institute, Vancouver, 1989. [14] Z. G. Tao and Y. C. R. Wong, “Hong Kong: From an industrialized city to a centre of manufacturing-related service [J],” Urban Studies, Vol. 39, No. 12, pp. 2345– 2358, 2002. [15] C. M. Wernerheim and C. A. Sharpe, “‘High order’ producer services in metropolitan Canada: How footloose arethey?” Regional Studies, No. 37, pp. 469–490, 2003.