Research On The Economic Effects Of Manufacturing Servicizing And Its Mechanisms

In the background of deepening international division of labor, China’s manufacturing industry is facing many problems such as upgrading and transformation problem, rapid development of service economic has brought unprecedented opportunities and challenges for Chinese manufacturing industry. Servicizing is a development direction of Chinese manufacturing industry to break the existing low-end model of development and improve its competitiveness.This paper use labor division theory and theory value chain to analyze the causes and significance of manufacturing inputs servicizing and outputs servicizing phenomenon. In the empirical part, this paper use a better indicator than the existing literature to measure the service level of manufacturing inputs and outputs servicizing in order to improve the reliability of empirical results.The empirical regression of the economic effects of inputs servicizing shows that the overall level of Chinese manufacturing inputs servicizing is not high enough to play a positive role in improving economic efficiency of the manufacturing sector. In the sub-sectors of producer services inputs on manufacturing industry, only the technical service has a positive correlation with manufacturing economic efficiency, and empirical results also show the lack of positive correlation between logistics services, information services, business services, financial services and manufacturing economic efficiency. The test of the mechanism of action showed that transaction costs and technological innovation have played a incompletely mediating effect. Inputs servicizing helps to reduce transaction costs, but the transaction costs are positively related with manufacturing economic efficiency; inputs servicizing failed to improve the technological innovation capability of Chinese manufacturing industry, but the empirical result has confirmed that technological innovation could improve manufacturing economic efficiency.The overall outputs servicizing level of Chinese manufacturing industry is not high and failed to promote the upgrading of the manufacturing sector profitability. The empirical results show that the types of services and manufacturing profitability have a inverted U-shaped relationship, and service intensity and the integrated indicator of outputs servicizing are negatively correlated with manufacturing enterprises’profitability. The manufacturing companies are divided into16sectors, the regression results show that there are six industries emerged different regression results. Service types of transportation equipment manufacturing, textile, leather and feather products industry and service strength of non-metallic mineral products industry have a positive U-shaped relationship with profitability of companies. In the empirical analysis of the mechanism of action, due to data limitations, only the mediating effect of transaction costs is examined. The results show that in regression analysis of the overall manufacturing enterprise transaction costs did not play a role in mediating effect. Then examine the existence of the mediating effect in sub-sectors of the manufacturer, the results indicate the existence of intermediary effect in four industry. Transaction costs have a full mediating effect in the economic effects of outputs servicizing of metal smelting and rolling processing industry and computer communications and other electronic equipment manufacturing, and have a incompletely mediating effect in the food and beverage processing industry and other manufacturing industries.According to the empirical results, this paper made many recommendations to the servicizing transformation for Chinese manufacturing industries. From a macro point of view, government should establish a conducive policy and strategic planning systems for the development of manufacturing servicizing and producer services. Enterprises which are in the process of servicizing transformation should pay attention to the following points, it is necessary to adjust business processes and organizational framework to reduce the cost of inter-sectoral coordination, and companies should control the type of services provided to a reasonable level based on the situation of the industry and their own company.