The Relationship Between Producer Services, Tasks Division And Manufacturing Goods Trade In East Asia

Since the1970s, the international division of labor has undergone a substantialchange; there has been a great change in the nature of international trade. Theinternational division has evoluted from inter-industry, intra-industry to tasksdivision.The world economy showed new features such as fragmentation of theproduction process, global production networks, and the prevalence of tasks andintermediate goods trade. With the split of the production chain and the prevalence ofmultinational companies outsourcing activities, the important role of services hasbeen noticed. In East Asia, the regional production network has been formed, it has amore perfect system of labor division than other parts of the world, which makes thecost of the services is more important for east asia. In this context, the author summedup to sort out the existing theory of producer services, tasks division and trade. Underthis, we analyse the relationship between producer services, tasks division andmanufacturing goods trade in East Asia, the results provide an important theoreticaland practical guidance for China to walk out of predicament. The dissertationcontains six chapters, the main points for each chapter are briefly introduced asfollows:Chapter1is the introduction. In this chapter, it elaborates the background of thistopic, clarified the structure arrangement and research method, and showed theresearch method, the innovation and shortness. Chapter2is the theory basis of this article. This chapter gives a theoreticalframwork for this article, it shows that: The labor division is the basis of internaitonaltrade, with the changing in the structure and development of labor division, the typeof trade, trade patterns also changed, the development of labor division is more andmore depend on the level of the service development. Thus, to cleatly understand thetrade patterns we should consider not only the international division of laborconditions, but also the level of the development of the services; The producerservices deepen the tasks division in multiple methods, the producer services asintermediate inputs could deepen the tasks division, it also can change the productionchain, and the organizatino of production.Chapter3examines various forms of international division of labor in East Asia,and then we divided three main periods for further analyzing. By combing the variousforms of international division of labor in East Asia since the1960s, we got that themain labor divisino has changed form inter-industry, intra-industry to tasks division.Currently, East Asia has formated a complex division network.Chapter4shows the empirical research between producer services and tasksdivison development. The empirical research show: Under the framework of tasksdivision, the producer services inputs could enhance the value-added of themanufacturing, and the effect of the producer services is higher than in theintra-industry and inter-industry; In Japan and the new industrialized countries, theeffects of the producer services inputs is increasing year by year, while developingcountries are on a downward trend; There has a signicant positive correlation betweenproducer services inputs and between the inputs and tasks division in East Asia; Withthe times going, the relative labor costs and other factors on the level of the process ofdivision of labor weakened productive inputs in enhancing; worth noting that,although the level of China’s producer services is the lowest in the area, it has thehighest value-added capcity, this means that producer services has been a constraints for the further development of China’s manufacturing industry.Chapter5is an empirial study between producer services and manufacturinggoods trade in East Asia. This chapter is mainly to study the relationship betweenproducer services and manufacturing goods trade under tasks division form. Throughthe anlysis of the econometric model empirical we get that: Since the establishment ofthe East Asia emerging international division of labor in2000, the prevalence ofproducer services trade and intermediate trades has replaced the place of the finalproduct trade, a multi-level trade structure has been formed in East Asia; Bothdomestic producer services inputs and imports of producer services inputs areconducive to enhance the competitivess of the manufacturing exports; The imports ofproducer services inpts can only enhance the technology-intensive manufacturingiindustry export, there isn’t significant correlationship between producer servivesinputs and the exports competitiveness of labor-and resource-intensive manufacturinggoods.Chapter6is the conclutions and suggestions.