Acta Geographica Sinica ›› 2007, Vol. 62 ›› Issue (8): 821-830.doi: 10.11821/xb200708004

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Industry Relevancy Analysis of Producer Services in China

SHEN Yuming1, QIU Ling1, WANG Maojun1, REN Wangbing2, SHANG Yuli1   

  1. 1. College of Resources Environment and Tourism, Capital Normal University, Beijing 100037, China;
    2. Academy of Macroeconomic Research, NDRC, Beijing 100038, China
  • Received:2007-01-08 Revised:2007-06-21 Online:2007-08-25 Published:2007-08-25
  • Supported by:

    Natural Science Foundation of Beijing City, No.9072002; The Key Project of Academy of Macroeconomic Research,NDRC; Program of Excellent Talents of Beijing City, No.20061D0501600222

Abstract:

In a flexible and information-oriented economy, producer services, used as intermediate inputs for the production of other goods or services, plays a key role in expanding division of labor, increasing productivity and inducing regional economic development. Based on the input-output tables of China in 1997 and 2002, the study applied the input-output method to industry relevancy analysis of producer services in China. The following conclusions were drawn. Firstly, the growth of producer services speeded up evidently from 1997 to 2002. The output of producer services was consumed by manufacturing industries leadingly, matching to the current situation that manufacturing industries took a dominant position in national economy. Because of feeble impulse to the development of tertiary industry by producer services, final use, but not intermediate use, drove basically the growth of tertiary industry nowadays. Secondly, the part consumed by manufacturing industries focused on conventional services, wholesale and retail trade services, transport and storage, rather than knowledge-intensive and technology-intensive services, reflecting the inferior consumption structure of manufacturing sector. Nevertheless, with the drop of intermediate use by manufacturing sector, the part consumed of intermediate use by services sector ascended from 1997 to 2002, which reflected the upgrade of producer services. Thirdly, according to the intermediate demand rate and intermediate input rate, most industries in producer services promoted the development of national economy markedly, in despite of low value added. Finally, owing to the remarkable forward effect and backward effect, special attention should be paid to boosting the growth of business services.

Key words: intermediate demand, China, producer services, industry relevancy, input-output analysis