The Effect Of Domestic Technical Content Of Service Exports On The Value-added Rate Of Manufacturing Exports

The development of the manufacturing industry is closely related to the quality of the service industry.The fierce competition of the Chinese manufacturing industry on the international stage cannot be separated from the service industry behind its competitiveness.In order to explore the promotion or inhibition between the export quality of a country’s service industry and the quality of manufacturing exports,this paper selects two indicators: the domestic technical content of a country’s export services and the domestic value-added rate of manufacturing exports to know whether the quality of the service industry and manufacturing industry exported by the country is high.This paper uses the 2001-2014 non-competitive input-output table of the WIOD database and the World Bank’s WDI per capita GDP data,with 42 countries in the input-output table(China Taiwan is excluded due to lack of per capita GDP data).The research sample,after the correction of the technical complexity,removing the imported intermediate inputs,measured the technical complexity of the export of 12 categories of service industries and the domestic technical content of export services of 42 countries and the export value added rate of national manufacturing industries.On this basis,this paper analyzes the relationship between the domestic technical content of export services and the added value of manufacturing industry,and analyzes the assumptions from the previous impact mechanism.Finally,the panel data is used for empirical research and relevant countermeasures and suggest are proposed.After rigorous calculations,the result shows that the technical complexity of the export of 12 types of services has been rising,and the domestic technical content of the export services of 42 countries has also been greatly improved.In addition,the empirical results show that the domestic technical content of service exports has a significant role in promoting the export value-added rate of a country’s manufacturing industry.After group analysis of the manufacturing sector,it was found that the domestic technical content of service exports played a most significant role in promoting mid-technology manufacturing,followed by low technology industries,and had a negative effect on high-technology.In addition,the accumulation of fixed assets and foreign direct investment has a positive effect on the value-added rate of manufacturing exports,while gross fixed capital formation has a negative effect on it.This paper lead to apply the measurement method of manufacturing domestic technology content tol service exports,eliminating the influence of foreign import intermediate on the actual service technology level of a country,and linking this index to the manufacturing export value-added rate indicator for the first time,having a more accurate analysis of the effect of service exports on the manufacturing industry.