The Relationship between Producer Service and Local Manufacturing Industry: Empirical Evidence from Shanghai

Shouming CHEN, Jie LI, Meijuan JIA

School of Economics and Management, Tongji University, Shanghai, China.

DOI: 10.4236/jssm.2009.23025                

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.

Keywords

producer service, manufacturing industry, co-integration testing, empirical analysis, shanghai

Conflicts of Interest

The authors declare no conflicts of interest.

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