The Impact Of Servicification On The Deepening Of Manufacturing Industry’s Domestic Value Chain Under The Background Of Dual Circulation

Under the improvement of international division of production,multinational production sharing activities promote the refinement of production processes,the complexity of production processes,and prolong the production chain.However,there is a manufacturing imbalance between different economies.For example,China’s manufacturing industry mostly takes the extensive development path of "low-end entry" in participating in the division of labor in the global value chain.In this context,countries have put forward strategic measures to integrate manufacturing industry and service industry.Under the unbalanced development of the global value chain,China has proposed "dual circulation" strategy,in order to better realize the in-depth connection between the domestic value chain and GVC with servicification as the starting point,and promote the deepening of the division of labor in the value chain.This paper aims to study the impact of servicification on the deepening of domestic value chain from the perspective of GVC chain structure driven by demand,and then explore effective measures to promote the deepening of domestic production division of GVC in manufacturing industry under the background of "dual circulation".Using the world input-output data,this paper calculates the servicification level of 42countries(regions)from 2000 to 2014,arranges the relevant indicators of backward GVC domestic production length by using UIBE GVC index database,makes panel regression on the data,and explores how the servicification affects the deepening of backward GVC domestic production division of manufacturing industry.The result shows that the higher the level of servicification,the longer the length of manufacturing GVC domestic production,that is,servicification can promote the deepening of manufacturing GVC domestic production division.Furthermore,from the perspective of country heterogeneity,there are differences in the impact of servicification on the length of domestic production chain of manufacturing industry in different samples of developed and developing economies;From the perspective of manufacturing industry heterogeneity,the servicification will have a difference in the length of domestic production chain due to the difference of sectoral factors;From the perspective of distinguishing the sources of service investment,the servicification based on domestic service input has a positive impact on the length of domestic production chain,while the servicification based on foreign service input reduces the length of domestic production chain.Therefore,this paper believes that the deepening of GVC domestic production division in manufacturing industry should improve the servicification and strengthen the input of service factors.Meanwhile,it should increase the proportion of domestic service input as intermediate goods in the production,so as to promote the refinement and complexity of production division and improve production efficiency.