The Impact Of Manufacturing Servitization On China’s Global Value Chain Status

Manufacturing is the foundation of a country’s economic prosperity and wealth creation,and is very crucial to the development of the country.In recent years,China’s manufacturing industry has developed rapidly,and China has become the largest manufacturing country in the world.However,China’s reliance on low-cost labor and land resources has led to the problem of "low-end locking" of China’s manufacturing industry in the global value chain.At the same time,the rise of global trade protectionism and the return of manufacturing in developed countries have made China’s manufacturing industry face "internal troubles and external challenges".Under the trend of the shift in global manufacturing to "service-oriented manufacturing",in order to promote the transformation and upgrading of China’s manufacturing industry and achieve high-quality development,it is necessary to increase the input of service elements and promote the deep integration of manufacturing and service industry.Based on the above background,this paper investigates whether the servitization of China’s manufacturing industry can improve its position in global value chain,and deeply explores the mechanism of the effect of technological innovation.Firstly,this paper reviews relevant literature on manufacturing servitization,global value chain and innovation efficiency,and theoretically analyzes the influence mechanism of manufacturing servitization on global value chain status.Secondly,WIOD database is used to measure the level of manufacturing servitization and GVC status index of China’s manufacturing industry respectively,and empirical test is carried out.The regression results show that improving the level of China’s manufacturing servitization can promote the status of global value chain which is still significant after the robustness test and endogeneity test.The results of heterogeneity analysis show that the servitization of manufacturing industry has a more significant effect on improving the global value chain status of labor-intensive industries.It is found that different from local service input,foreign service input will hinder the promotion of global value chain.And the impact of service intermediate inputs from different service industries on GVC position is heterogeneous.The mechanism test results show that manufacturing servitization can promote GVC status by improving technological innovation efficiency,while the global value chain participation has a positive moderating effect between the manufacturing servitization and GVC status.Finally,based on the above empirical results,this paper puts forward some specific policy suggestions,such as promoting the deep integration of manufacturing and service industry,coordinating service input at home and abroad,strengthening the training of innovative talents and intellectual property protection,promoting manufacturing enterprises to actively participate in the division of global value chain,and appropriately serving,so as to improve the level of China’s manufacturing servitization and promote the climb of global value chain to a high-end position.