The Research On The Impact Of Servitization On Manufacturing FDI In China

Manufacturing servitization refers to the process of transformation of manufacturing activities and services.China's manufacturing industry faces two major difficulties: the gradual disappearance of traditional advantages and the fierce competition from other developing countries such as India.To get out of the dilemma,we must find new competitive advantages,and the transformation of manufacturing to servitization is a feasible solution.Calculation results show that the change of the level of servitization and internal use of FDI in manufacturing showed a greater similarity,and study the inner link between the t wo has positive significance on how to solve the plight of China's manufacturing FDI.The paper studies the influence of manufacturing servitization on the FDI from three aspects: current situation analysis,theory and empirical study.Firstly,the analysis of the status quo of the servi tization level of the manufacturing industry shows that the servitization level of the manufacturing industry in China is decreasing first and then rising.The scientific research servi tization level of high-tech manufacturing industry is higher,and the transportation servitization level of low technology manufacturing and medium technology manufacturing industry is higher.According to the statistic data,while the overall FDI scale is declining,but the change of low,medium and high technology manufacturing FDI present different trend,high-tech manufacturing FDI is increasing,low technology manufacturing is falling.The scattered graph of manufacturing servitization and FDI shows that there is a clear positive correlatio n between the servitization and FDI.Secondly,combined with production and service links theory,the paper analyze the mechanism of the influence of manufacturing servitization on FDI.Manufacturing servitization can promote manufacturing productivity and reduce cost by knowledge spillover effect and cost effect,which eventually will improve the competitive advantage and promote foreign investment growth.Finally,the empirical results show that China's manufacturing servitization level has a significant positive influence on FDI in manufacturing industry,but there is a large gap between different in dustries and different servitization types.Among them,the servitization of manufacturing industry has no significant influence on the FDI in low-tech manufacturing industry,but it has significant positive influence on the whole manufacturing industry and high-tech manufacturing.Water environment,waste recycling and scientific research servitization only have positive effect on high technology manufacturing FDI,but they have no obvious effect on FDI in low technology and medium technology manufacturing;Business servitization has no obvious effect on FDI in medium technology manufacturing,but it has obvious impact on the rest of the two kinds of manufacturing.Financial servitization have a significant positive impact on FDI in low,medium and high technology manufacturing industries,and the influence of information servitization on FDI in manufacturing industry is not significant.Combined with the research conclusion,the last part of the paper puts forward three policy suggestions on promoting the servitization level of China's manufacturing industry.