The Impacts Of Producer Services FDI On The Efficiency Of Manufacturing Industry

China is a big manufacturing country.By 2017,China’s manufacturing output was about $4.5 trillion,accounting for about 33 percent of the world’s total manufacturing output,which is exactly twice that of the United States’ manufacturing output.The manufacturing industry with huge output value occupies an important position in the national economy of our country,so the upgrading of manufacturing industry is an important motive force and source in the development of China’s economy.However,in recent years,with the rise of external international trade protectionism,the deterioration of the global economic development environment,as well as the decline of the internal demographic dividend,rising labor costs and a series of current situations,the development of manufacturing industry is facing enormous challenges.Once relied on the low-cost "global factory" model is no longer suitable for the next China,and even the global economic trend.Overcapacity has forced China’s manufacturing industry to shift from labor-intensive to knowledge-intensive,and industrial upgrading is imminent.The key to the upgrading of manufacturing industry lies in the improvement of efficiency,and many scholars have found that the development of producer services plays an obvious role in promoting the upgrading of manufacturing industry.Therefore,this paper discusses the contribution of producer services to the efficiency of the manufacturing industry from the perspective of FDI technology spillover.Starting from the current situation of producer services FDI and the efficiency of the manufacturing industry in China,this paper explores the mechanism of their influence and the core factors influencing their relationship.Thus it enriches the theoretical research of FDI in the cooperative development of producer services and manufacturing industries and puts forward new ideas and optimization methods for improving the efficiency of the manufacturing industry in China.Based on the theory of industrial relevance and specialization,this paper makes an empirical analysis of the relationship between FDI in producer services and the efficiency of manufacturing industry by means of grey correlation analysis,panel regression,intermediary effect test,and panel threshold regression.The core content is divided into the following parts:1.We analyze the current situation of FDI and manufacturing efficiency of producer services in China.We measure the overall development level of producer services FDI in China from 2006 to 2015,the changes of producer service FDI in different segments,and analyze the development status,regional development differences and industry distribution characteristics of the efficiency of manufacturing industry.We find that both producer services FDI and service FDI show an increasing trend in quantity.The growth rate of producer services FDI in 2014 and 2015 increased rapidly.Apart from the fluctuation of individual years,the total FDI of producer services showed an upward trend.Among them,the amount of FDI in leasing and business service industry is relatively large,and it has been keeping a leading position until 2015.Since China has gradually reduced the restriction of FDI in the financial sector in recent years,the FDI of the financial industry has a small growth in 2006-2013,and the growth rate was increased in 2014 and 2015,especially in 2015,the total FDI in the financial sector exceeded the leasing and business services industry,and the FDI in the other three industries has steadily increased steadily.We also find that there are obvious differences among regions in producer services FDI,and FDI in the eastern region is obviously higher than that in the central and western regions,which indirectly indicates that the level of regional development plays an important role in FDI.The scale of manufacturing industry increased rapidly in 2006-2015,which far exceeded the developed countries in Europe and the United States;in terms of regional efficiency,the eastern part of China was slightly higher than the central region and the western region is relatively lower than the eastern and central regions,which is consistent with the trend of regional distribution of producer services FDI.However,the growth rate of efficiency in the western region is much higher than that in the eastern region,and there will be a great trend of catching up and overtaking in the future.The industrial efficiency of 29 manufacturing industries in China has great differences in the level of labor productivity.Most subdivision industries show a steady increase in efficiency.However,the growth rate of efficiency of individual industries fluctuates greatly,and the efficiency of each industry still has great room for improvement compared with western developed countries.2.We analyze the influence mechanism of producer service FDI on the efficiency of the manufacturing industry and probes into the influence mechanism through a mathematical model.Producer service FDI promotes the efficiency of the manufacturing industry by reducing manufacturing cost and improving manufacturing innovation ability.Specifically,producer service FDI exerts an effect on the efficiency of manufacturing industry through two paths.First of all,the level of FDI technology spillover,through demonstration,competition,human mobility and other effects to promote the development of producer services,due to the increase of their own industrial products to reduce the cost of manufacturing,so directly improve the efficiency of manufacturing output.Secondly,the producer service FDI forms vertical technology spillover to the upstream and downstream manufacturing enterprises of the industrial chain,which leads to the increase of the number of new products in the manufacturing industry through the forward correlation effect of the downstream manufacturing industry.Through the establishment of a long-term cooperative relationship with upstream manufacturing suppliers,the technology spillover is carried out to improve the learning willingness of manufacturing enterprises,thus promoting the innovation ability of upstream and downstream manufacturing enterprises,and finally forming the effect of improving the efficiency of manufacturing industry.3.There is an obvious correlation between FDI of producer services and the efficiency of the manufacturing industry.Based on the grey relational analysis,We examine the relationship between FDI of producer services and the efficiency of manufacturing industry from two dimensions of industry and region.At the industry level,the average grey correlation between FDI of producer services and manufacturing industry efficiency is 0.81.The order of correlation between FDI of producer services and three kinds of the efficiency of the manufacturing industry is capital-intensive,technologyintensive and labor-intensive.It shows that FDI spillovers of producer services tend to be firms with strong capital and technological innovation.At the regional level,except Gansu Province,the grey correlation degree between FDI of producer services and the efficiency of manufacturing industry is greater than 0.6,with an average value of 0.79.Under the influence of regional factors,there are regional differences in the correlation degree between FDI of producer services and the efficiency of manufacturing industry,and the correlation degree in the eastern region is higher than that in the central region and the western region in general.4.We examine the influence of producer service FDI on the efficiency of the manufacturing industry.Based on the least square estimation,the panel regression method of fixed effect model and stochastic effect model,we find that producer service FDI has a strong promoting effect on the efficiency of manufacturing industry in China.Based on the panel data of 29 manufacturing sectors from 2006 to 2015,we find that FDI in total producer services has a positive effect on the efficiency of the manufacturing industry.In the study of subdivision industries,we find that the influence of producer service FDI on the efficiency of the manufacturing industry in five sub-sectors is quite different.The order of influence degree from large to small is leasing and business services industry,transportation、warehousing and post industry,scientific research、 technical services and geological prospecting industry,information transmission、computer services and software industry,finance industry.Except that the effect of leasing and business services industry FDI on the efficiency of manufacturing industry is higher than that of producer services,the effect of FDI on the efficiency of manufacturing industry in other industries is obviously lower than that of producer services.From the regional point of view,the overall producer service FDI plays a significant role in promoting the efficiency of manufacturing industry in all regions of China,and the impact of producer service FDI on the efficiency of manufacturing industry in the central and eastern regions is higher than that in the whole country.The degree of influence in the western region is lower than the national level.5.We examine the impact of FDI on the efficiency of the manufacturing industry.According to Zhonglin Wen ’s mediator effect model,we study the intermediary role of production cost and innovation ability in producer service FDI affecting the efficiency of the manufacturing industry.The results show that the intermediation effects of both manufacturing cost and manufacturing innovation ability are significant and the intermediary effect of innovation ability is stronger than that of production cost.It shows that the innovation ability of the manufacturing industry is more effective than the production cost of manufacturing industry to explain the improvement of the efficiency of the manufacturing industry affected by the production service industry FDI.The intermediary effect of production cost is similar in the 5 segments from 3% to 6%.The intermediary effect of innovation ability is more different in the 5 different productive service industries,the interval span is from 8% to 38%.With the exception of the financial sector,the proportion of intermediary effects in the other four industries is higher than that in the producer services industry as a whole.Among them,transportation、storage and post office industry 、 information transmission 、 computer service and software industry,scientific research、technical service and geological exploration industry have the most obvious intermediary effect of innovation ability,accounting for 31.70,37.09% and 32.63% of the total effect.It means that FDI of these three industries affects the efficiency of the manufacturing industry mainly depends on improving manufacturing innovation ability.6.Based on the data of 21 provincial units in China from 2006 to 2015,we find that the level of transport infrastructure has a significant threshold effect on the producer services FDI affecting the efficiency of manufacturing industry.As a whole,there are significant double thresholds for IFD of producer service industry to be affected by transportation infrastructure.The thresholds are 5.824 and 7.767.Before and after the two threshold values,the influence coefficients of the productive service industry FDI on the efficiency of the manufacturing industry are 0.051,0.070 and 0.089.The traffic infrastructure level in East,middle and western regions has only a single threshold,and the threshold values are found to be the coefficients of the 5.871,6.566 and 7.767.Before and after the threshold value,with the improvement of regional traffic infrastructure,the impact of FDI on the efficiency of manufacturing industry is increasing.It means that strengthening the level of regional traffic infrastructure can effectively promote the driving effect of the production service industry FDI on the efficiency of the manufacturing industry.However,in different regions,there are great differences in the influence of producer service FDI on the efficiency of the manufacturing industry in China.In some economically developed regions,the impact level of producer service FDI on the efficiency of manufacturing industry is lower than that in some economically underdeveloped regions.The level of transport infrastructure in most provincial areas is in the middle reaches,that is to say,the impact of producer services FDI on the efficiency of manufacturing industry has been removed from the constraints brought about by the low level of transport infrastructure.However,there is still room for increasing FDI spillover of producer services.In conclusion,based on the theoretical model,this paper focuses on the path and influencing factors of producer service FDI affecting the efficiency of the manufacturing industry.The conclusions further enrich the relevant research results of FDI technology spillover.It also provides some useful ideas and methods for the increase of the efficiency of the manufacturing industry and industrial upgrading in China.