Empirical analysis of regions of Mainland Chinas manufacturing efficiency promotion: Experiences and lessons

The manufacturing sector has been a decisive force in promoting economic development in China. According to the number of workers, net fixed assets and other economic data in China during 2000 to 2007, using data envelopment analysis (DEA) we can build a single-figure index reflecting the comprehensive manufacturing competitiveness of all regions. Based on those index and extension data of producer services, panel data are available and a model can be set up. After empirical analysis, the conclusion is as follows: the development of producer services in China is conducive to the promotion of manufacturing competitiveness, and one percent rise of the development of producer services can promote 2.6% of manufacturing efficiency. Along with these findings, we can put forward some suggestions for green producer services including improving the external environment, strengthening the cluster effect, promoting independent innovation, enhancing the level of opening up of producer service industry and so on.   Key words: Producer services; manufacturing competitiveness; data envelopment analysis; panel data.