Open AccessThe Relationship between Producer Service and Local Manufacturing Industry: Empirical Evidence from Shanghai
Author(s) -
Shouming Chen,
Jie Li,
Mingxing Jia
Publication year - 2009
Publication title -
journal of service science and management
Language(s) - English
Resource type - Journals
eISSN - 1940-9907
pISSN - 1940-9893
DOI - 10.4236/jssm.2009.23025
Subject(s) - outsourcing , manufacturing , service (business) , industrial organization , empirical research , business , tertiary sector of the economy , marketing , mathematics , statistics
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