Xia Jiechang and Zhang Xiaobing: A Study on the Basic Path for Producer Services to Promote Industrial Upgrading and the Related Finance and Taxation Measures

Abstract: Accelerating the development of producer services is both conducive to enhancing the level and quality of industrialization, promoting industrial upgrading, as well as the only way to realize a modernized and high-end service industry, and thus a “win-win” strategic choice for China. In the process of its industrialization and urbanization, China must follow a development path driven by the two engines of producer services and modern manufacturing. China should reinforce the roles played by producer services in penetrating and supporting manufacturing and agriculture amid the development of industrial division, integration and agglomeration, enhancing the level of producer services, and realizing the development of producer services. Government and the market are the two basic forces in promoting the development of producer services. We should both fully recognize the fundamental role that the market mechanism plays, as well as make great efforts to give full play to the positive roles of the government policy, especially finance and taxation policies, in promoting producer services.

Keywords: Industrialization process, Producer services, Industrial upgrading, Finance and taxation policy

Source: China Finance and Economic Review, Volume 2, No.1, 2013

About the Authors: Xia Jiechang is a research fellow and director of the research division for service economics and Prexy’ Assistant of the National Academy of Economic Strategy, Chinese Academy of Social Sciences. He is also a professor and doctoral supervisor at the Graduate School of the Chinese Academy of Social Sciences. He primarily researches service economics theory and policy. He is also the academic leader of service economics, key discipline of Chinese Academy of Social Sciences, chief expert of the project “Study on China’s Modern Service Industry Development Strategy”, an important project sponsored by the National Social Science Fund, and the expert giving the report titled Promoting China’s Great Development of Service Industry at the 26^th lecture for Standing Committee of the National People’s Congress. He has published nearly 100 articles in key journals, including Economic Research Journal, Management World, China Industrial Economics, Finance & Trade Economics, and others. His representative works include Greeting the Era of Service Economy (Economy & Management Publishing House, 2010).

Zhang Xiaobing is conducting his postdoctoral research in the field of applied economics at the National Academy of Economic Strategy, Chinese Academy of Social Sciences. His research interest lies primarily in industrial economy and industrial policy. He has published six papers in journals including the Journal of Graduate School of Chinese Academy ofSocial Sciences, Review of Economic Research, and others.