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Urbanisation and changes in the sectoral structure of economic development: the scale of the manufacturing sector in Chinese cities and the shift towards service industry

  • Peter Daniels


    (UoB-SERU - Services and Enterprise Research Unit - University of Birmingham)

  • Pengfei Ni


    (CASS-IFTE - Institute of Finance and Trade Economics - Chinese Academy of Social Sciences)

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    There are many dimensions to the evolving economic development model in China and the role for urbanization within it. One key component is a requirement to incorporate a wider range of service industries, especially in the nation's fast-growing cities where there is demand for knowledge and related advanced services that will support, for example, the necessary shift to more 'modern' manufacturing. This paper summarizes progress towards servicification and the rationale for undertaking more research that will deepen understanding of the actual and potential contribution of producer services. Some recent empirical evidence on the growth trends for producer service in selected cities, including the four case study cities of Shanghai, Huangshan, Chongqing and Kunming, is presented. It is shown that in majority of cities the manufacturing-services gap remains a significant.

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    Paper provided by HAL in its series Working Papers with number hal-00943972.

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    Date of creation: Feb 2014
    Date of revision:
    Handle: RePEc:hal:wpaper:hal-00943972
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    1. Marcus Noland & Donghyun Park & Gemma B. Estrada, 2012. "Developing the Services Sector as Engine of Growth for Asia: An Overview," Working Paper Series WP12-18, Peterson Institute for International Economics.
    2. Lodefalk, Magnus, 2012. "The Role of Services for Manufacturing Firms’ Exports," Working Papers 2012:10, Örebro University, School of Business.
    3. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    4. Joseph Francois & Julia Woerz, 2007. "Producer Services, Manufacturing Linkages, and Trade," FIW Working Paper series 002, FIW.
    5. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    6. Kirkegaard, Jacob Funk, 2012. "Transactions: A New Look at Service Sector Foreign Direct Investment in Asia," ADB Economics Working Paper Series 318, Asian Development Bank.
    7. Ghani, Ejaz, 2012. "Service with a Smile," World Bank - Economic Premise, The World Bank, issue 96, pages 1-6, November.
    8. John R. Bryson, 1997. "Business service firms, service space and the management of change," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 9(2), pages 93-112, January.
    9. P.W. Daniels, 2004. "Reflections on the "Old" Economy, "New" Economy, and Services," Growth and Change, Wiley Blackwell, vol. 35(2), pages 115-138.
    10. Arti Grover Goswami & Aaditya Mattoo & Sebastián Sáez, 2012. "Exporting Services : A Developing Country Perspective," World Bank Publications, The World Bank, number 2379.
    11. Aaditya Mattoo, 2003. "China's Accession to the WTO: The Services Dimension," Journal of International Economic Law, Oxford University Press, vol. 6(2), pages 299-339, June.
    12. Hong Yi & Fiona F Yang & Anthony G O Yeh, 2011. "Intraurban location of producer services in Guangzhou, China," Environment and Planning A, Pion Ltd, London, vol. 43(1), pages 28-47, January.
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