A Study On Influence Of Producer Service On Chinese Manufacturing Competitiveness

With the trend of Chinese manufacturing expansion and urgency of upgrading itsindustry, the relationship between producer services and manufacturing has been thefocus of the study. In the period of Chinese economic transition，the development ofproducer service has been lagged behind，which is difficult to meet the need ofupgrading manufacturing. How to utilize FDI in producer services to boost domesticmanufacturing competiveness is the focus of this study.Few domestic studies focus on the impact of FDI in producer services tomanufacturing， especially empirical ones. This dissertation attempts to adopttheoretical and empirical analysis and brings forward some proposals for Chinesegovernment for reference.In the theoretical part, the dissertation elaborates the channels and effects of theimpact of FDI in producer services to manufacturing. In addition, this study putsforward three hypothesizes based on theoretical analysis and the present condition inChina. In the empirical Part, the dissertation constructs two dynamic panel datamodels from25Chinese provinces and28manufacturing industries in China(2000-2010) respectively, utilizing Stata11.0dynamic GMM estimation to test for thethree hypothesis mentioned above. The main findings of the study stated as followed.Firstly, FDI in producer service has a significant positive to Chinesemanufacturing competiveness; the result of model that divides the sample into eastern，central and western region approves the existence of regional difference.Secondly, Human capital and institutional environment and development ofservices are approved to be the main effects of the impact of FDI in producer servicesto manufacturing. Besides, the optimization of education foundation and furtherdevelopment of producer service both promote regional FDI absorptionThirdly, producer FDI linkage has a significant positive impact on manufacturingcompetiveness, FDI in financial service and information service both promotemanufacturing competiveness, while the spillovers of FDI in transportation serviceand scientific service are weak to which we give relevant explanation.The main innovation of this study is to make up the blank of domestic empiricalresearch on the impact of FDI in producer services to manufacturing at the level ofmacro and industry.