A Study On The Integration Between Producer Services And Manufacturing And Its Influence On Total Factor Productivity

Industrial integration,as a new trend and new feature of economic development,blurs the original boundary division of industries,and promotes the industrial system to move towards an integrated development model.In particular,the promotion and application of the information service system composed of "Beidou + New Infrastructure" will promote the integrated development of all industries on a larger scale.The producer service industry and the manufacturing industry depend on each other.It can be said that the specialization of producer services provides important support for realizing the advanced development of the manufacturing industry,and the high-level demand of the manufacturing industry are a reliable carrier for realizing the specialized development of the productive service industry.Then,how to ride the east wind of industrial integration and efficiently use the role of the link between the producer service industry and the manufacturing industry to creat favorable conditions for the high-quality development of China's economy is the main issue that this paper focuses on.During the "new normal" period,total factor productivity is the new driving force leading the high-quality development of our country's economy.In order to follow the pace of industrial integration development,this paper studies the integration of producer services and manufacturing(“two-industry integration”)and its impact on total factor productivity,including the analysis of its influence relationship,mechanism of action and heterogeneity effects,which will help to better utilize the combined advantages of "manufacturing + service",and promote China's economy to a new level.In the review of relevant literature,it is found that the existing research on the issue of industrial integration mostly manifested in the integration of industrial industry and information industry,and the comprehensive integration of rural primary,secondary and tertiary industries,and the integration of "Internet +",however,there is less attention to the integration of other industries,and focus on the integration of producer services and manufacturing is even rarer.“two-industry integration” is conducive to the acquisition of new materials,new technologies,new equipment,and new processes across industries,and obtain the reorganization and expansion of products,businesses,and markets,which ultimately makes the originally independent industry possess both manufacturing attributes and service attributes.When the manufacturing industry expands to the producer services field,which causes the proportion and status of service elements in manufacturing activities to increase,this path can be defined as the servitization of manufacturing;when the producer service industry extends to the manufacturing field,which causes the proportion and status of manufacturing factors in service activities to increase,this path can be defined as the manufacturing of productive services.“Two-industry integration”requires the overall planning and organic integration of the two integration paths so as to give full play to the mutual promotion of the producer service industry and the manufacturing industry,and fully tap the development potential to achieve high-level development.Compared with the research on industrial integration,the existing research on total factor productivity is richer,which mainly focuses on three issues:(1)How to scientifically measure total factor productivity scientifically.(2)How to improve the effect of total factor productivity on economic growth.(3)What are the factors that affect total factor productivity and what is the path of action? In the literature related to the third question,there is less focus on the factor of industrial integration,and even fewer focus on the field of interactive integration between producer services and manufacturing.In order to develop the regional economy,the "promising government" may set its sights on the“two-industry integration”,and this behavior choice will produce the effects of economies of scale,technological progress,technical efficiency,and resource allocation,all these effects will comprehensively effect on the growth of regional total factor productivity.For companies that take value or profit as the key,whether they are actively choosing integration transformation out of strategic needs,or passively adopting adaptive adjustment strategies to cope with changes in the market integration environment,they all need to make a series of rectifications on their organizational structure,market operations,technology research and development,etc.,all of these will have a direct or indirect impact on the company's total factor productivity.Through the interpretation of the macro-regional level and the micro-enterprise level,this paper comprehensively explores the impact of the “two-industry integration” on total factor productivity in theory,and combines it with empirical analysis to construct an econometric model,empirically tested the relationship between "two-industry integration" and total factor productivity.This paper has done the following research: firstly,the two-way integration measurement method based on the non-parametric stochastic frontier model is used to creatively measure the degree of industrial integration between the producer service industry and the manufacturing industry.Secondly,it analyzes the effects of "two-industry integration" on provincial total factor productivity,including the impact mechanism and the existence of heterogeneity effects.Finally,it analyzes the effects of "two-industry integration" on the enterprise's total factor productivity,including the mediation mechanism and the existence of heterogeneity effects.The main research conclusions are as follows:Firstly,this paper uses the non-parametric stochastic frontier model,takes the manufacturing development index as the input and the producer service industry development index as the output,and calculates the integration coefficient of the manufacturing of productive services.The integration coefficient of the manufacturing of productive services present the result of western region>central region>eastern region.The possible explanation for this result is that in the eastern region,although the manufacturing industry is relatively developed,there is still a large amount of low-end manufacturing,such as low-tech processing,OEM,etc.,which have a limited impact on the producer service industry.And the impact of high-end manufacturing here on the producer service industry is also limited,because their development is highly dependent on the producer service industries in developed countries,and their dependence on domestic producer services is so small that their positive impact is small.All these have led to a low integration level of producer services manufacturing.When the producer service industry development index is used as the input and the manufacturing industry development index is used as the output,and the calculated integration level of servitization of manufacturing also has the characteristics of the western region>the central region>the eastern region.The possible explanation is that although the producer service industry in the eastern region is relatively developed,compared with its large-scale manufacturing development foundation,the supply of the producer service industry is relatively insufficient,moreover,the homogeneity competition in the producer service industry is fierce.All these make the promotion of the manufacturing industry not strong,and the integration coefficient of servitization of manufacturing is not high.Comparing the two single-path integration,the integration coefficient of the servitization of manufacturing is greater than the integration coefficient of the manufacturing of producer services,that is,the "two-industry integration" mainly driven by the servitization of manufacturing.Combining the two single-path integration coefficients.In order to reflect the “depth of integration” and “degree of coordination” at the same time,this paper innovated the method of Xie Kang et al.(2012),and obtained the interaction coefficient of the "two-industry integration" in 31 provinces from 2011 to 2017.Since the interaction integration coefficient is jointly affected by the two single-path integration,it presents similar characteristics,that is,the western region>the central region>the eastern region.Secondly,from the perspective of the impact of the "two-industry integration" on provincial total factor productivity,we found that when the degree of integration between the producer service industry and the manufacturing industry is low,the integrated development of the two major industries will not good for improving provincial total factor productivity,but when the degree of integration increases above a certain level,the integrated development will significantly promote the growth of provincial total factor productivity,that is,the two of them have a positive U-shaped relationship.In addition,when the location distribution,integration path,and other aspects are different,the relationship is also heterogeneous.Then,through empirical analysis,we decompose the total factor productivity and find that the "two-industry integration" has a significant impact on scale efficiency and pure technological progress,and it is through these two paths that have effects on the total factor productivity.In addition,the market environment also has important indirect effects,an environment with a higher level of marketization or a smaller market scale will magnify the adverse impact of the "two-industry integration" on the inter-provincial total factor productivity,when the environment is exactly the opposite,it will reduce its adverse impact on inter-provincial total factor productivity.Thirdly,from the perspective of the impact of the "two-industry integration" on the total factor productivity of enterprises,we found that when the degree of integration between the producer service industry and the manufacturing industry is low,the integrated development of the two major industries will not be conducive to the improvement of enterprise total factor productivity,but when the degree of integration increases above a certain level,the integrated development of the two major industries will significantly promote the increase of inter-provincial total factor productivity,that is,the two of them have a positive U-shaped relationship.In addition,this relationship is also heterogeneous when the integration path,the location distribution of the company,the nature of ownership,and other aspects are different.Then,through the analysis of the quantile regression model,we found that for companies with different quantiles of total factor productivity,manufacturing companies with high quantiles are more likely to benefit from the development of integration between the producer service industry and the manufacturing industry.In addition,we constructed an intermediary effect model based on the industrial structure,and found that due to the industrial structure,the "U" curve became flat and shifted to the left,which means that the threshold of integration has dropped,and the "two-industry integration" after crossing the threshold has weakened the strength of its effect on the growth of enterprise total factor productivity.From the double inspection at the macro level and the micro level,this conclusion is reliable that the integration of the producer service industry and the manufacturing industry has a significant positive U-shaped impact on total factor productivity.Based on the results of empirical analysis,this paper puts forward some suggestions on how to accelerate the interaction and integration of producer services and manufacturing,and how to release the effect of total factor productivity at the macro-regional level and micro-enterprise level to a greater extent.The innovations of this paper are as follows: Firstly,most studies only focus on the integration path of the servitization of manufacturing,and less focus on the integration path of the manufacturing of producer services.Regardless of who extends the olive branch to whom between the two major industries,the result is the "two-industry integration".Therefore,this paper innovatively studies the interactive integration of the producer service industry and the manufacturing industry.Secondly,in order to measure the degree of the interactive integration,this paper draws on the method of Xie Kang et al.(2012),and innovates in this method so that it can reflect both the "depth of integration" and the "degree of coordination".Thirdly,this paper empirically analyzes the impact of "two-industry integration" on total factor productivity from the provincial level and the enterprise level,and strengthens the credibility of the research conclusions through double verification at different levels.