| On the basis of realization of manufacturing liberalization,expanding service liberalization is not only a requirement for building the new development and new opening pattern,but also the key to realizing comprehensive opening up.Under the concept of "promoting development through opening up",expanding service liberalization and making rational use of foreign service resources not only adapt to Chinese rapidly increasing level of "economic servitization",but also improve Chinese service sector’s poor international competitiveness and poor structure.reasonableness,etc.At the same time,with the rapid development of Chinese economy and the continuous expansion of the absolute scale of the manufacturing,the conditions that previously promoted the development of Chinese manufacturing have undergone significant changes under the "new economic normal".More seriously,as a core part of the modern industrial system,the decline in the growth rate and proportion of the manufacturing have aggravated concerns that China is falling into the "middle-income trap".How to promote the manufacturing development is a big issue.China is facing enormous pressure to transform from a “big manufacturing country” into a "strong manufacturing country".From the internal perspective,not only does the comparative advantage of labor gradually disappear with the inflection point of Chinese population and the rapid rise in labor wages,but the manufacturing production expansion also makes China face the constraints of production resources,including land and environment.The continuous rise of resource prices have greatly increased the production cost of Chinese manufacturing,posing a threat to the international competitiveness.From the external perspective,Chinese manufacturing faces the challenge of reshaping the international landscape.First,merchandise trade demand is affected by weak international economic recovery,trade protectionism and the breakout of COVID-19 adversely.Secondly,Chinese manufacturing faces the threat of being locked in GVC’s low position,as well as the double squeeze from the developed countries’ "reindustrialization" strategy and the developing countries’ "undertaking the transfer of international division of labor"."In the future,Chinese high-quality development must be carried out under more open conditions." In the opening-up environment dominated by service liberalization,it has important theory and realistic meaning to explore how to promote the quality of manufacturing development.Based on the background of further expansion of service liberalization and the inevitable requirement of reversing the predicament of the manufacturing development and improve the quality of the manufacturing development,this paper starts with the path of promoting the manufacturing development,and focuses on exploring how service liberalization could play a positive role in the process of manufacturing development.First of all,through experiential and theoretical analysis,this paper grasps and interprets the new connotation of Chinese manufacturing development in the new era,and proposes the path to promote Chinese manufacturing development in the new era from three progressive dimensions: enterprises,industries and regions.And three paths are firm innovation,industry resource allocation efficiency and regional industrial upgrading.Secondly,profit guarantee is the premise and foundation of the manufacturing development,and the mathematical model and theoretical research of this paper show that service liberalization significantly increase the profit of the manufacturing,and play a positive role in promoting the manufacturing development.Subsequently,on the basis of Zhu et al.(2020),Han and Yang(2020),this paper builds a mathematical model of service liberalization and the path of the manufacturing development,and analyzes the impact and of service liberalization on three different realistic paths to promote Chinese manufacturing development and the underlying mechanism behind it.Finally,this paper makes empirical examination the significantly positive impact of service liberalization on firm innovation,industry resource allocation efficiency and regional manufacturing upgrading,based on different level data and some empirical methods,such as OLS model,DID model and IV model.And then it is concluded that "service liberalization plays a key role in promoting the manufacturing development".The research structure of this paper is divided into eight chapters.Chapter 1 is the introduction,which mainly introduces the background of Chinese manufacturing development and service liberalization.Chapter 2 is the literature review,sorting out and summarizing the literature that is closely related to this paper.And this paper summarizes the research value and contribution of this paper by analyzing existing literature.Chapter 3 is about theoretical analysis and mechanism discussion.First,based on the related fact and theory,this paper puts forward the theoretical connotation of Chinese manufacturing development in the new era,and discusses potential path to promote Chinese manufacturing development in the new era from firm,industry and region dimensions.The key paths are firm innovation,industry resource allocation efficiency and regional industrial upgrading.Secondly,through mathematical models and theoretical analysis,this paper tries to explore the impact of service liberalization on three key paths of promoting Chinese manufacturing development and the mechanisms behind them.Chapter 4 analyzes the facts of service liberalization and the manufacturing development.This chapter mainly sorts out the characteristics of international service trade and introduces the history and current situation of Chinese service liberalization.This chapter also summarizes the current situation of Chinese manufacturing and the development difficulties it faces under the "new normal".Chapter 5 discusses the impact of service liberalization on the paths of Chinese manufacturing development: based on the perspective of firm innovation.It mainly empirically analyzes the impact of service liberalization on firm innovation,and explores the moderating effect of the institutional environment,as well as mechanisms of cost correlation and technology spillovers,by using patent’s knowledge breadth as a proxy variable of firm innovation,and identifying service liberalization by building DID model.Chapter 6 discusses the impact of service liberalization on the paths of Chinese manufacturing development based on the perspective of industry resource allocation efficiency.Markup dispersion is used to measure the industry resource allocation efficiency,and the description of service sector in the Foreign Investment Industry Guidance Catalog identifies the service liberalization.Using OLS model and IV model,this chapter empirically analyzes the role of service liberalization on improving resource allocation efficiency,and explore the moderating effect of institutional environment,micro-enterprise decomposition analysis of industry resource allocation efficiency and the cost correlation mechanism.Chapter 7 discusses the impact of service liberalization on the paths of Chinese manufacturing development: based on the perspective of regional manufacturing upgrading.with the Technology Sophistication as the direction of manufacturing upgrading,this chapter constructs a regional manufacturing upgrading index based on Chinese Industrial Enterprises Database.And then this chapter empirically analyzes the impact of service liberalization on regional manufacturing upgrading,the moderating effect of institutional environment,micro-enterprise decomposition analysis of regional manufacturing upgrading,and knowledge spillover mechanism.Chapter 8,called conclusions and policy recommendations,summarizes conclusions of this paper,puts forward constructive policy inspirations and suggestions,and points out feasible future research directions and prospects.Using the research methods such as literature review,theoretical analysis and empirical analysis,this paper draws the following conclusions:(1)China is gradually accelerating the pace of service liberalization.On the one hand,service import and service FDI in China continue to expand with optimizing the service trade structure.And the RCA index of Chinese service trade increased significantly from 2005 to 2015,which means that the international competitiveness of service trade rised significantly.On the other hand,based on the "Foreign Investment Industry Guidance Catalog" to measure the degree of service liberalization,it is found that between 2001 and 2011,the liberalization degree of all sub-sectors of the service sector increased.(2)Chinese service liberalization plays a key role in the high-quality development of Chinese manufacturing.It promotes the manufacturing development by acting on the development path of firm innovation,industry resource allocation efficiency and regional manufacturing upgrading.First,service liberalization significantly increases the knowledge breadth of patents,which means that service liberalization could encourage firm innovation and further promote Chinese manufacturing development.Parallel trend test,placebo tests,and robust regression analysis have proved the reliability of the benchmark conclusions.And service-dependent firms,eastern-region firms and non-SOE firms are more impacted by service liberalization.Secondly,service liberalization significantly reduces industry markup dispersion,which means that service liberalization could promote the manufacturing development by increasing industry resource allocation efficiency.And this conclusion is robust to IV test and other robustness test.Its heterogeneity analysis shows that eastern-region industries,servicedependent industries are more easily affected by service liberalization and producing service liberalization has more positive influence of lowering industry markup dispersion than consuming service liberalization.Third,service liberalization significantly helps upgrade region manufacturing structure,especially increasing the ratio of high technologySophistication industries,which is robust to IV test and other robust tests.Its heterogeneity analysis shows that the more significant effect on regions with relatively diverse industries,Non-SOEs and export firms.(3)Service liberalization has cost correlation effects and technology spillover effects through input-output connection.First,service liberalization could promote competition in the service sector,and then reduce service-input cost by increasing competition between service firms.And then through input-output channel,it could help reduce manufacturing production cost.Besides,more advanced foreign service inputs could help promote service outsourcing,resulting manufacturing “slimming” and the reduction of manufacturing adjustment costs.Second,the foreign advanced technology and knowledge content brought by service liberalization spills over to the manufacturing through the inputoutput connection,thereby promoting firms’ innovation ability,and upgrading regional manufacturing structure.(4)The institutional environment has the moderate effect of service liberalization influence on manufacturing development.On the one hand,in the research on firm innovation and industry resource allocation efficiency,this paper introduces the interaction term between institutional environment and service liberalization in order to explore the moderate effect of institutional environment on service liberalization influence.With the continuous improvement of the institutional environment,the positive effect of service liberalization on promoting the firm innovation and improving the industry resource allocation efficiency has been significantly enhanced.In the research on regional manufacturing upgrading,by distinguishing between one sub-sample with better institutional environments and another sub-sample with weaker institutional environments,it is found that service liberalization has a significant positive impact in upgrading region manufacturing structure in regions with a better institutional environment,while it has no significant impact in upgrading region manufacturing structure in regions with a weaker institutional environment.This paper focuses on exploring how service liberalization could play a positive role in the process of promoting the manufacturing development,which not only enriches the research on the economic effects of service liberalization,but also provides a new research perspective for promoting Chinese manufacturing development in the new era.The main contributions and innovations of this paper are:(1)In terms of research perspectives,the existing research on service liberalization mostly focuses on its impact on the overall economy,such as trade,employment and production efficiency,and the relevant research on the manufacturing development is also lack of analysis from the perspective of service liberalization.Therefore,this paper focuses on how service liberalization promotes Chinese manufacturing development in the new era,which not only provides one new research perspective for the economic effect of service liberalization,and enriches the relevant research of service liberalization,but also provides a new research direction and ideas for expanding the research on the factors of manufacturing development.(2)In terms of research content,first of all,this paper innovatively introduces the content of service opening-up into the traditional open economics,industrial economics and regional economics theories.Starting from the path of promoting Chinese manufacturing development,this paper not only expands the research and analysis framework between service liberalization and manufacturing development,which provides solid theoretical evidence for the positive effect of service liberalization on the promotion of manufacturing development,but also helps to supplement the lack of research on service liberalization in the open economics theory.Secondly,in the specific research,this paper focuses on the new connotation of Chinese manufacturing development in the new era,innovatively constructs the path framework of manufacturing development from the three progressive dimensions of firm,industry and region.(3)In terms of research methods,first of all,this paper provides a new causal identification strategy for the research on service liberalization.This paper innovatively treats Service Trade Innovational Development Pilot as the policy shock,and constructs one DID model to identifies service liberalization.Also,this paper innovatively treats service liberalization of the BRIC countries as one new instrumental variable for Chinese service liberalization,and uses the two-stage OLS model to deal with potential causal problems.Secondly,with the help of rich micro-enterprise database,this paper innovatively conducts micro-channel analysis on industry resource allocation efficiency and regional manufacturing upgrading.This paper creates important research value and has realistic significance for further expanding service liberalization and promoting Chinese high-quality manufacturing development.(1)Conclusions of this paper provide theoretical and empirical support for China to continue expanding service liberalization and promote high-quality development of Chinese economy.It helps eliminate the worry about "de-industrialization" and "industrial hollowing out",and clear ideological obstacles of Chinese service liberalization.(2)How to open up is a key issue in service liberalization.The process of service liberalization should actively comply with China’s transformation from a large manufacturing country to a powerful manufacturing country,meet the demand of China’s manufacturing sector for the service factor,and promote the close integration of the service sector and the manufacturing sector.First,how to select opening service subsectors? The paper finds that producing services sector has a stronger promoting effect,and manufacturing with high service factor dependence receive more influence.Therefore,China should expand the opening of the producing service,improve the service level of the manufacturing,and promote the integration of the service and the manufacturing sector.Secondly,the ability of industrial transfer in central and western regions determines Chinese balanced development.Therefore,service sector opening in these regions should be improved,which promotes gradient transfer of Chinese manufacturing.Considering technological spillover of service liberalization,China should pay attention to the opening up of high-end,high-tech-intensive service industries,on the basis of meeting the needs of domestic service elements.In the context of transformation to networked and digitalized global economy,we should introduce advanced and high-tech digital information service elements,and promote Chinese high-quality development with a higher level of opening up.(3)How to make better use of the new opening pattern is another important issue.First,optimize the business environment and maintain important achievements of service liberalization.This paper finds that the institutional environment has a strong moderating effect on service liberalization.The improvement of the business environment helps break invisible barriers in the service transaction process and reduce the uncertainty and transaction costs.China should accelerate the market-oriented reform of the service sector,reduce administrative intervention,and improve relevant legal and regulatory systems,to prevent the morality and default risks of service trade.Second,achieve the integration of the domestic factor market.China should not only optimize the mechanism to ensure the free flow of domestic and foreign service factors,but also break the restrictions on the flow of labor and capital,giving play to the guiding role of service liberalization.Finally,the realization of technology spillovers depends on domestic active absorptive capacity.To this end,China should improve construction of the talent team,reform education system,and cultivate innovation and professional talents.Moreover,actively guide enterprises to strengthen human resources,improve scientific research,and relative policy support including tax incentives should be conducted. |
