The Impact Of OFDI In Productive Services On China’s Manufacturing Export Efficiency

As a country with strong manufacturing industries,China’s manufacturing export has always occupied the main position of China’s export.At the initial stage of manufacturing development and participation in the global value chain,China’s production mode is mainly to meet the processing and manufacturing needs of products with low added value.However,over time,with its unique advantages in labor resource endowment,China began to export a large number of labor-intensive products and obtained a large number of trade profits related to import and export of manufacturing industry.However,China’s export strategy is still to increase the number of manufacturing export products,and China’s products are still not in the upper reaches of the global value chain.As the release rate of China’s demographic dividend has become more and more slow,the prices of other production factors such as land and technology have also increased year by year with economic globalization,the production cost of manufacturing products is also rising recently,and the amount of profits that can be obtained is also growing slowly.At the same time,the intensification of trade friction and the prevalence of trade protectionism have led to a certain degree of restrictions on China’s manufacturing exports,which has an impact on the export efficiency of China’s manufacturing products.In order to maintain the high growth rate and export efficiency of China’s manufacturing export,China should mainly improve the pertinence of China’s manufacturing export commodity market and the international competitiveness of export commodities.On the other hand,it should also pay more attention to the market demand potential of the host country and to choose the export market reasonably.At present,the export efficiency of China’s manufacturing industry is generally rising,but the average over the years has basically maintained at the level of 20% to 50%,which shows that there is still room for further improvement of China’s export efficiency to the host country.At the same time,due to the further appreciation of RMB and the increasing international trade barriers,the comparative advantage of China’s manufacturing product export has weakened.Under the background of the change of import demand in the international market,although the overall export trade volume of China’s manufacturing industry maintains the growth trend,low-quality products and low-price products have always occupied the leading position of China’s export.Although the efficiency of manufacturing export products is improving,the speed has slowed down in recent years,and there is a large gap in the efficiency of China’s manufacturing industry’s export of products to different regions,To improve the overall export efficiency,we should first pay attention to the economies with lower export efficiency,which has also become the key to promote the export efficiency of China’s manufacturing industry.The outward direct investment in producer services is the direction of outward direct investment that China has paid more attention to in recent 10 years.Before 2009,China’s outward direct investment was more inclined to the mining industry and the production and supply industry of power/gas/water.However,since 2009,the focus of China’s outward direct investment industry has gradually changed,more inclined to the wholesale and retail industries of producer services Leasing and business service industries have made a lot of investment,while the information dissemination,computer service,software industry and scientific research and technology service industry in producer services have sprung up in recent five years.On the one hand,it shows that the service economy has gradually occupied a major position in the world,on the other hand,it also shows that foreign direct investment in producer services has a great impact on China’s economy.Under the background of more restrictions on foreign direct investment in manufacturing industry and little development space,but the momentum of foreign direct investment in producer services is good,producer services,as a means of opening up the market,China can use its unique role in production to promote the export of China’s manufacturing industry and improve the export efficiency of China’s manufacturing industry.Through the empirical analysis of the relationship between the scale of China’s foreign trade and the promotion of the efficiency of manufacturing industry,this paper explores the theoretical results of the promotion of China’s foreign trade.On the basis of summarizing the relevant theories and literature on the impact of producer services OFDI on manufacturing export efficiency,this paper quantitatively analyzes the mechanism of producer services OFDI promoting manufacturing export efficiency.Secondly,using the relevant data,this paper analyzes the current situation of China’s producer services foreign direct investment and manufacturing export,calculates the export efficiency of manufacturing industry by using the stochastic frontier gravity model,selects the data of six major economies with major foreign direct investment in China’s producer services from 2011 to 2020,constructs the model and carries out the regression analysis of panel data.Both theoretical and empirical analysis show that China’s export efficiency to the six major economies rises gently over time,but there is a large gap in the export efficiency of manufacturing industry in different regions;The overall foreign direct investment in China’s producer services industry can promote the overall export efficiency of manufacturing industry.Among them,five industries can promote the overall export efficiency of manufacturing industry.Last,combined the results of theoretical analysis and empirical research,this paper puts forward the following suggestions: first,strengthen the foreign direct investment in producer services and deeply tap the potential market of the host country（region）;Second,when making foreign direct investment,we should take targeted differentiation measures;Third,actively promote the signing of more FTAs and promote the export of manufactured products;Fourth,promote the development of manufacturing products to high quality and high technology;Fifth,adopt different investment strategies for different economies and actively expand the market;Sixth,promote exports through foreign investment and encourage enterprises to carry out cross-border mergers and acquisitions to actively participate in the global value chain.