Research On The Impact Of Institutional Quality On The Participation Of GVC In Productive Services Industry

In recent years,the traditional trade structure has undergone tremendous changes,and vertical specialization has been continuously deepened,which has extended to producer services,bringing huge impact.As a representative of high added value and high profit,producer services' participation in GVC has an important influence on a country.It is a good opportunity for low-and middle-income countries to increase their participation and optimize their position in production.In current studies,scholars focus on examining the impact of material resources,human capital accumulation,technological factors and other factors on the participation degree of GVC in producer services,and have long neglected the key factor of institutional quality.Therefore,it is of great theoretical and practical significance to study the influence of institutional quality on the division of labor in the value chain of producer services and explore its influencing mechanism.This paper takes the participation degree of GVC in producer services as the research object.Firstly,this paper expounds the concept of value chain and the concept of institutional quality.Furthermore,the influence mechanism of institutional quality on GVC participation in producer services is explained theoretically,including the influence mechanism of contract maintenance system,property protection system and transaction cost.There are two points to the logic of the contract maintenance system's influence mechanism.First,high-quality institutions have a catalytic effect,including: providing legal safeguards;Reduce uncertainty.Second,a low-quality system is a hindrance,including an increase in production costs;Distort the allocation of resources;Influence the attractiveness of trade.In addition,producer services products are very sensitive to this effect.The reason is that its products are intangible,difficult to quantify,and lack of a single market.These characteristics of producer services products are likely to lead to opportunistic behavior.Moreover,since producer services cannot choose alternative mechanisms to safeguard their own interests,contract maintenance system is more meaningful than property protection system.By analyzing the influence mechanism of transaction cost,it is shown that the influence of GVC on producer services is mainly the balance of labor division income and transaction cost,and transaction cost constitutes the indirect influence mechanism of institutional quality on GVC.Next,this paper expounds the value-added decomposition principle of WWZ(2017)and the construction of global value chain participation index.Using the 2000-2014 world Input-output table,this paper conducts country-level analysis and industry-level analysis of global value chain participation.The results show that there is a big gap between China and South Korea in various industries of producer services,and China is greatly affected by the financial crisis or other crisis events.There is a big gap with India in some areas such as software and communication industry,but it is less affected by the crisis.Due to choose to offshore outsourcing,most of the Japan's participation in global value chain are lower,but still maintained a leading position in the industry.Finally,the empirical research shows that the institutional quality does have a positive direct impact on the participation degree of GVC in producer services,and can play a greater role when the trade openness,economic development level and infrastructure construction level reach a certain degree.The degree of marketization represented by economic freedom can well measure transaction costs.The improvement of contract maintenance system can reduce improper government intervention in the market,reduce institutional constraints,and finally reduce transaction costs and enhance the competitiveness of producer services products.Among the different industries of producer services,the influence of institutional quality on each subsector is different,among which the transportation and storage industry and professional technology industry have the greatest influence,and both of them have the highest participation degree of GVC.In different types of countries,institutional quality plays a positive role,confirming that the improvement of institutional factors is indeed a "overtaking opportunity" in non-high-income countries;Comparing contract maintenance system and private property protection system,the research believes that the influence of the latter is not statistically significant,which may provide direction for the follow-up policy recommendations.