Does The Internet Enhance The Vertical Specialization Of Chinese Enterprises?

With the development of information technology,vertical specialization has become an important trend in the evolution of production organizations.Taking China as an example,this thesis discusses the impact of the Internet on the vertical specialization,and pays special attention to the limitations of the role of the Internet in the special factors of China's transformation.It is found that,the Internet has promoted the vertical specialization level of the enterprise as a whole;and this role can't be replaced by other means of communication and transportation;after considering the endogenous problems caused by measurement errors,two-way causality,missing variables,and covariance bias,as well as other problems such as sampling error,standard error clustering bias,and model setting bias,the above conclusions are still generally robust.However,there are limitations in the role of the Internet: only if Internet penetration rate exceeds a certain threshold,can the role of the Internet be revealed.;the Internet can only reduce the cost of search for enterprises,and has no significant impact on the cost of contracts;the increase of the Internet penetration rate I n other provinces is not beneficial to the level of division in the enterprises in this province,which means that the role of the Internet is limited in space;the Internet can only increase the proportion of external purchase of direct material intermediate inputs and can't increase the proportion of external purchase of intermediate inputs for productive services.From the policy point of view,on the one hand,we must affirm the positive role of the Internet on the promotion of the vertical specialization in enterprises;on the other hand,it is necessary to realize that the popularization of the Internet is only the necessary condition for the promotion of the vertical specialization of the enterprises.When promoting the popularity of the Internet,it is necessary to further optimize the commercial credit environment,reduce the market segmentation between provinces and support the rapid development of the productive service industry.Only in this way can we have positive resultant force and promote the vertical specialization levelof the enterprise maximally.