Producer Services Vertical Specialization And Manufacturing Global Value Chain Climb

With the rapid development of economic globalization and the deepening of global division of labor,countries around the world have actively integrated into the global value chain division of labor system.However,the reality is that the division of labor in GVCS is mainly dominated by multinationals from a few developed countries.Most countries are still at the middle and lower end of the value chain,and their production links can only get relatively low added value.As far as the development of China's manufacturing industry is concerned,the problem of "big but not strong" has always been the dilemma that the domestic manufacturing industry wants to get rid of.The report to the 19 th national congress of the communist party of China(CPC)explicitly stated the need to "promote China's industries to move up the global value chain".Therefore,how to promote the position of global value chain to the two ends of the high value-added links has become the core goal of China and other countries in the world to achieve their own manufacturing upgrading,is also the strategic direction of their ability to obtain the "voice" in the international division of labor,but also the important mission of promoting the common development of the whole world economy.Vertical specialization is an important driving force for the development of international trade.This paper will examine the influence of vertical specialization of producer services on the rise of global value chain of manufacturing industry.Based on the analytical framework of Hummels et al.(2001)and Koopman et al.(2010),this paper measures the vertical specialization level of producer services and GVC status index of manufacturing industry in 42 countries from 2000 to 2014 by using the latest data of world input-output database(WIOD),and makes a horizontal international comparison.The measurement results show that the vertical specialization level of producer services presents five significant features :(1)the vertical specialization level of producer services exports in various countries is significantly lower than that of manufacturing industries as measured by existing literatures;(2)the vertical specialization level of producer services exports in most countries fluctuates greatly;(3)the export vertical specialization level of large countries is often lower than that of small countries;(4)the vertical specialization level of producer services in developing countries is generally low;(5)the vertical specialization level of producer services exports in China is generally declining.The GVC status index of manufacturing industry shows three significant features :(1)the GVC status index of manufacturing industry in most countries in the sample is negative;(2)the GVC status index of the manufacturing industry in most countries in the sample shows a downward trend;(3)the overall measure results of China rank high,and the cut-off point in 2008 shows a "U" trend of decreasing first and then increasing.Then the theoretical hypothesis of this paper is put forward by expanding the theoretical model of the influence of import trade on the technological innovation of a country or region studied by predecessors.The empirical results show that(1)the overall level,the level of vertical specialization of producer services can cause negative impact on global value chain of manufacturing status index,and regardless of what kind of quantile level positions of the global value chain in manufacturing,the vertical specialization of producer services are global value chain of manufacturing status index have a negative effect;(2)sample level,economic development is relatively good state of productive service industry vertical specialization of the negative impact of global value chain of manufacturing status up to less than the state of economic development is relatively backward,the latter in the division of labor into the global value chain system will be presented,such as the low level of financial development level and the service industry development,the structure of the elements is imperfect,lack of foreign direct investment would be significantly inhibit the problems such as the rising of global value chain;(3)the heterogeneity to further expand the analysis,the vertical specialization of producer services for different elements of labor-intensive manufacturing the influence of the global value chain status index were negative,but its influence coefficient but there are significant differences in industry,which the influence of the rising status of labour-intensive manufacturing global value chain is the smallest,impact on capital-intensive manufacturing rising status in global value chain is the largest.Finally,according to the conclusion of this study,the paper puts forward some policy suggestions,such as moderate import of productive services,emphasis on improving the level of financial development,quality of foreign capital introduction and human capital level,vigorously develop the service industry,and promote the strategic transformation of service-oriented manufacturing.