AccScience Publishing / IJPS / Volume 10 / Issue 2 / DOI: 10.36922/ijps.0316
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Two-way employment-driving effect of manufacturing and producer services: Evidence from China

Yanan Liang1 Cheng Zhang2*
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1 Department of Economics Teaching and Research, Party School of the Central Committee of the Communist Party of China (National Academy of Governance), Beijing, China
2 Department of Population and Labor Economics, School of Applied Economics, University of Chinese Academy of Social Sciences, Beijing, China
IJPS 2024, 10(2), 78–89;
Submitted: 7 March 2023 | Accepted: 1 November 2023 | Published: 8 December 2023
© 2023 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution -Noncommercial 4.0 International License (CC-by the license) ( )

Employment holds paramount importance in people’s lives, and the employment interaction between manufacturing and producer services plays a crucial role in steadily expanding employment opportunities, thereby achieving high-quality full employment. This paper delves into the data of A-share listed companies in China from 2012 to 2020, exploring the two-way effects of producer services on manufacturing and vice versa. The results reveal a significantly positive two-way employment-driving effect between manufacturing and producer services. Notably, the employment-driving effect of producer services is stronger than that of manufacturing enterprises. The results of the heterogeneity test based on the breakdown types of producer services and manufacturing highlight that the employment-driving effect of high-tech services on manufacturing is more prominent, approximately 2.85 times greater than that of non-high-tech services. This suggests a clear and substantial scale technology effect. Conversely, the employment-driving effect of high-tech manufacturing on producer services is found to be insignificant. In conclusion, the findings underscore the significant impact of producer services in driving manufacturing employment. It is imperative for the government to enhance its support for producer services enterprises and broaden employment opportunities within these sectors.

Manufacturing employment
Employment in producer services
Employment-driving effect
Simultaneous equation
Social Research Project of Youth Humanities and Social Sciences Research Center of the Chinese Academy of Social Sciences
Graduate Student Research and Innovation Support Program of the University of Chinese Academy of Social Sciences (Graduate School)

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Conflict of interest
The authors declare that they have no competing interests.
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