Abstract
Producer services play an import role in accelerating the development of manufacturing industry; however, the path that producer services promoting China’s manufacturing structure upgrade has not been adequately studied. According to provinces' panel data in China from 2000 to 2010, structural equation model is built up to empirically analyze the effect and path that producer services affect its manufacturing structure upgrade. It is showed that: producer services significantly promote manufacturing structure upgrade; producer services promote manufacturing structure upgrade through direct and indirect effect, where indirect effect is greater than direct effect; the indirect effect reached by stimulating demand is much greater than by improving technology. DOI: 10.5901/ajis.2013.v2n9p135
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