Producer Service Import On The Upgrade Of Manufacturing Industry From The Perspective Of Global Value Chain

With the development of economic globalization,China's manufacturing industry has developed rapidly.Compared with developed countries,China's manufacturing exports are mainly labor-intensive products and engaged in low added value processing and assembly sector in the division of labor among the global value chain.In recent years,under the predicaments of “low-end locking” of the global value chain and insignificant labor cost advantages,China's manufacturing industry is in urgent need of transforming and upgrading to the mid-to-high end of the value chain.The return of high-end manufacturing in the developed countries including European countries and the Unites States also poses new challenges for the transformation and upgradation of China's manufacturing industry.The producer services industry,which as an intermediate factor investment,has already become one of the important ways to promote the manufacturing industry.It has a high degree of industrial integration and strong innovation capabilities.With the further opening of the service industry and the promotion of a series of policies such as innovative development of service trade,the scale of China's productive service imports has continued to expand in order to meet the diversified needs of domestic manufacturing for intermediate inputs to productive services,and effectively promote the transformation and upgradation of China's manufacturing industry.However,some scholars pointed out that dependence on imported producer services will lead to the shrinking of domestic producer services.Problems such as technological blockade and import dependence in developed countries will inhibit the development of producer services in developing countries,and aggravate the locking of developing countries at the low end of the global value chain.Against this backdrop,this article mainly discusses whether imported productive services can promote the upgradation of a country's manufacturing global value chain,which has certain practical meaning for China's manufacturing industry that is in urgent need of transformation and upgradation.According to the sub-sample,different stages of economic development will not change the effect of productive service imports on the upgrading of manufacturing products and functions in the value chain.Moreover,the impact of productive service imports on the upgrading of manufacturing industries under the glabol value chain is more pronounced in economies with lower levels of economic development.This paper first summarizes the relevant literature on the transformation and upgradation of manufacturing industry from the aspects of the quantity and quality ofproductive service imports.Then this paper analyzes different effects brought by productive service import on the upgradation models of manufacture under the value chain.By analyzing these effects,this paper holds the view that through specialization and technological spillover effect,productive service imports can promote the upgradation of manufacturing industry,but its research and development,low-end locking inhibition and other effects may also inhibit the function of the manufacturing industry upgrade.In the empirical part,this paper used the latest input-output table data of the World Input Output Database(WIOD),calculating the statues of 42economics' manufacturing industry among the overall global value chain between2000 and 2014.And then,the paper uses simple OLS and two-step systematical GMM model to analyze the effect of the upgradation of manufacturing from the aspects of productive service import quantity and quality.The regression results indicate that,On the whole,both quantity and quality of productive service imports can promote the upgrading mode of manufacturing products and inhibit the upgrading mode of manufacturing functions.Besides,the effect of productive service quality is more significant than that of quantity.Based on the theoretical and empirical analysis,this paper puts forward the following suggestions: 1.vigorously supporting the development of domestic producer services.2.improving the import structure of productive services.3.enhancing the industrial integration of manufacturing industry and producer services,and bringing manufacturing industry into service industry.4.gradually opening up the service trade to the outside world and improving the market environment.