The Import And Export Sophistication Of Services And The Upstreamness Of Manufacturing

Driven by global trade liberalization and information technology revolution,the global value chain has been gradually formed,and the international division of manufacture is deepening.Although Developing countries can enhance their technological level by embedding in the global value chain,they are facing the risk of being locked in the middle and low-end sectors.China proposed the supply side reformation and "made in China 2025",and began the pace of industrial structure transformation.This paper calculated the upstreamness index of manufacture and complexity index of services of 43 economies between 2001 and 2013.Then,this paper discussed how complexity index of services influenced upstreamness of manufacture.And then the panel data is used for empirical research,after that this paper made out some suggestions.The empirical results show that the complexity of both import and export of services can significantly promot the upstream level of a country's manufacturing.After grouping the manufacturing sector,we find that the technology complexity of service trade has the largest role in promoting the low and high technology manufacturing sector,while it has the lowest promotion effect on the the mid-technology sector.In addition,the accumulation of fixed assets has a positive impact on the level of the upstream degree of a country's manufacturing industry.However,FDI is negatively correlated with the upstreamness of manufacturing sector,it implies that most FDI countries transfer the downstream part of domestic manufacturing industry to FDI receiving countries.