Research on Influencing Factors of Productive Service Industry
 Yushuang Chen, Jin Dong; Yi Wang
(School of Economic, Changchun University of Finance and Economic, Changchun 130122, People's Republic of China)
 

First Author: Yushuang Chen, Lecturer, Master, School of Economic, Changchun University of Finance and Economi.
Corresponding Author: Yushuang Chen, School of Economic, Changchun University of Finance and Economic, Email: 277187623@qq.com
 
 
Abstract：The contribution rate of the third industry output is increasing year by year in GDP in China, while the productive service industry is gradually becoming known to the people as the "rookie" of the third industry. The using approaches in composing dissertation involve the factorial analysis and the linear regression analysis, to explore the influencing factors of productive service industry, and to promote the economic development. The five factors do have an impact on product service industry, and the degree of impact of changes in product service industry from the influence factors is: the investment environment > the degree of industrialization > human capital and scientific research input > the industrial structure > the degree of opening to the outside world. Then relevant recommendations that the studies thrown up will be given at the end of the paper.
Key words: Productive service industry; Industrial economy; Factorial analysis; Linear regression analysis 
 
1 Introduction
Productive service industry is a really hot study in the present industry economy research, which is a service industry that mainly works for promoting industrial technological progress and industrial upgrading, maintaining the continuity of industrial production process and improving production efficiency. China is a big exporter, who is especially active after being stimulated by industrial and manufacturing exports. The development of productive service industry can not only integrate and optimize the allocation of resources, improve the efficiency of social production, accelerate the transfer of funds, but also solve the employment problem for a large part of people. It is really the development direction of modern society.
 
2 An empirical study on the influencing factors of productive service industry
2.1 Index selection
    We start to analyze from five aspects: the degree of industrialization, the degree of opening to the outside world, the investment environment, human capital and scientific research input, the industrial structure. The five aspects contain 27 specific indicators, as shown in Table 1.
Table 1 The aspects and specific indicators

productive service industry	Y: added value of productive service industry（billion）
the degree of industrialization	X1: industrial value-add（billion）
	X2: the proportion of urban population to total population
	X3: the number of industrial enterprises
	X4: total power of agricultural machinery (10000 kW)
	X5: number of small tractors
	X6: output of automotive(10000)
the degree of opening to the outside world	X7: total imports and exports (USD million)
	X8: Turnover of foreign contracted projects（USD 10000）
	X9: Number of projects utilizing foreign capital
	X10: export quantity of tea (ton)
	X11: RMB exchange rate against US dollar (US $=100) (RMB)
	X12: number of enterprises with foreign investment
the investment environment	X13: foreign exchange reserves (US $100 million)
	X14: actual amount of foreign direct investment（USD 10000）
	X15: number of domestic listed companies (A, B shares)
	X16: stock turnover (100 million shares)
	X17: currency (M1) supply (100 million RMB)
	X18: investment in fixed assets (100 million RMB)
human capital and scientific research input	X19: ordinary undergraduate and junior college graduates (10000)
	X20: expenditure on development of research and experiment (100 million RMB)
	X21: number of trade union organizations (10000)
	X22: number of colleges and universities
	X23: number of overseas students (10000)
	X24: the total number of staff and workers in ordinary colleges and universities (10000)
the industrial structure	X25: first industry increment value specific weight in GDP
	X26: second industry increment value specific weight in GDP
	X27: third industry increment value specific weight in GDP

 
From the official website of the China Bureau of statistics, the data of these 27 indicators from 1995 to 2014 are found to study. The measurement units of these 27 indicators are different, so we calculate Z score for data standardization. Based on these standard data, the empirical analysis is done.  
2.2 High-dimensional reduction
Due to the large number of variables, there may be a series of problems such as the independent variables are correlated, data weighting is unconscious. So we utilize the method of factorial analysis with the help of SPSS software to reduce dimension.
Table 2 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.		.707
Bartlett's Test of Sphericity	Approx. Chi-Square	288.665
	df	15
	Sig.	0.000

KMO and Bartlett's test can test the correlation between variables. As shown in Table 2, the KMO measure of sampling adequacy =0.707>0.6 in the study, and the significant level of P value<0.05. Through the test, the original variables is suitable for factorial analysis, and the results are meaningful.
Table 3 Total Variance Explained

Component	Initial Eigenvalues			Extraction Sums of Squared Loadings
	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	4.789	79.819	79.819	4.789	79.819	79.819
2	1.062	17.705	97.524	1.062	17.705	97.524
3	0.134	2.226	99.751
4	0.008	0.137	99.888
5	0.006	0.104	99.992
6	0.001	0.008	100.000

     Extraction Method: Principal Component Analysis.
We can see from Table 3 that when two common factors are extracted, the information loss of all variables is little, and the extraction effect is the best. Both the initial Eigenvalues and the total variance explained are high. So we can use the two comprehensive factors to represent these 27 variables.
By bringing the original data into the factor score equation, we can get the comprehensive data from the five aspects: the degree of opening to the outside world, the investment environment, human capital and scientific research input, the industrial structure.
2.3 Regression model construction
We use the five factors (F1, F2, F3, F4, F5) as independent variables, and the standardized Z score of added value of productive services industry (Y) as the dependent variable, to analyze the relationship between independent variables and dependent variable. With the help of SPSS software, we can get the following regression model:
    (1)
After testing, coefficient of determination , the fitting effect of the model is very good. And the t test of each variable are all passed, so all the independent variables affects the dependent variable. The regression model is effective.
We can see from the study that the five factors do have an impact on product service industry. When the degree of industrialization increases 1 unit, added value of productive services industry will reduce 0.812 units. When the degree of opening to the outside world increases 1 unit, added value of productive services industry will increase 0.048 units. When the the investment environment increases 1 unit, added value of productive services industry will increase 1.127 units. When the human capital and scientific research input increases 1 unit, added value of productive services industry will increase 0.684 units. When the the industrial structure increases 1 unit, added value of productive services industry will increase 0.223 units.
In terms of the absolute value of the coefficient, the degree of impact of changes in productive services industry from the influence factors is: the investment environment > the degree of industrialization > human capital and scientific research input > the industrial structure > the degree of opening to the outside world.
 
3 Conclusions and Suggestions
The paper uses factorial analysis and the linear regression analysis to explore the influencing factors of productive service industry. The 27 chosen indicators can be summed up into 5 aspects, which do have an impact on product service industry but have different degrees of impact on producer services. The order is: the investment environment, the degree of industrialization , human capital and scientific research input, the industrial structure, the degree of opening to the outside world. On the basis of the study, the following recommendations can be obtained:
(1) Expanding investment and making the market active to provide a good environment for the development of productive services industry. Expansion of investment is not just to increase investment for productive services industry. As long as the currency in the market increases, factors of market, factors of production will become active, and more productive services industry will come into being.
(2) The development of productive services industry needs to reduce the investment in industry properly. Productive service industry belongs to the third industry, and the industry belongs to the second industry, so the regression coefficient is negative. But it does not mean that the industry will inhibit the development of productive service industry. Productive service industry builds on the derivatives industry in which it serves, when it serves the industry, the development of the industry will promote the development of productive service industry.Therefore, it is possible to develop the business related to productive service industry.
(3) Improve the comprehensive quality of service personnel. Fundamentally, productive services industry is a service industry, the quality of service personnel is particularly important. Increase the educational input, research and technology investment to improve the overall quality of the country is not only to promote the development of productive services industry, but also to enhance national comprehensive strength.
(4) Increase communication between industries and communication between countries. Reform and Opening-up is a macroeconomic policy, there is no policy for a specific industry. If there is such a change, productive service industry will be affected positively, such as reduce the import and export tax on productive services industry, and strengthen international exchanges from the policy, and so on.
(5) As soon as possible to complete the task at this stage, and gradually complete the transformation of industrial structure. The high degree of industrial structure is a symbol of the development, so that promotion of the third industry should be further increased. To complete the task of China at this stage as soon as possible, and to develop the productive forces vigorously can make China entered the ranks of developed countries.
 
 

 
Acknowledgement:
The Education Department of Jilin Province "NO.13 five years" social scientific research plan project:  Analysis on the Effect of Productive Service Industry in Jilin Province to Economic Development of 2016, No. 555.