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.
C. Q. Guo, “Evolution of manufacturing model and tendency of manufacturing development, doctorate forum of Anhui manufacturing development,” Hefei University of Technology Publishing House (in Chinese), 2004.