Research On The Impact Of Import Of Producer Services On The Productivity Of China's Manufacturing Industry

As the pillar of China's economic development,the quality of its development determines China's international competitiveness.Since Economic Reform and open up,China's manufacturing industry has experienced explosive development.However,under the dual pressure of domestic and international pressure,the low price advantage of human capital and fixed asset investment price has gradually disappeared,which has led to the lack of driving force for China's manufacturing productivity to continue to rise.How the manufacturing industry moves to high value-added links through productivity improvement is a question worth considering.China's manufacturing industry can no longer rely solely on the extensive development model of the cumulative input of traditional factors of production,and requires the input of advanced factors of production to promote the improvement of productivity and the transformation to intensive development,which is in need of importing producer services.The producer services contains advanced factors of production such as technology and knowledge,providing high-quality intermediate service products for the manufacturing industry and promoting manufacturing productivity.Although the import growth rate of China's producer services is relatively higher,it does not have a competitive advantage in the international market,and its development is relatively backward.In particular,patents,concessions,insurance and finance play a key role in the manufacturing industry,but at this stage,they cannot meet the high-quality demand for intermediate service inputs in China's manufacturing industry.In order to seek the driving force for the continuous growth of manufacturing productivity and realize the intensive transformation and upgrading of China's manufacturing industry,it is necessary for China to import producer services from abroad.In this context,the thesis adopts the literature analysis method and further analyzes the import status and structure of China's producer services.It finds that the import of China's producer services grew rapidly and the growth rate and structure of the sub-sectors are present differences.There is a structural imbalance in the international competitiveness and import share of the producer services.Among them,modern producer services,especially finance,insurance,patents,concessions and other commercial services have low international competitiveness.However,its import share still maintains a low share,and it has a large gap with the import share of developed countries.Through the C-D production function to measure the total factor productivity of the manufacturing industry,it is found that the growth rate of wages and fixed asset investment of the manufacturing industry has remained stable,but the growth rate of manufacturing output and manufacturing TFP has gradually decreased,reflecting the lack of driving force for manufacturing development in China at this stage.Based on the traditional trade theory,the new trade theory and the new growth theory,we discuss the impact of the import of producer services on the domestic producer services industry from the perspectives of trade effect(Import supplement effect and competitive effect)and interaction effect(Intermediate factor input effect,factor reorganization effect and spillover effect),and then explore ways to improve the manufacturing productivity.Through empirical analysis of time series data from 2005 to 2017,it is found that the import of producer services has a significant effect on the manufacturing productivity.For every 1%increase in import of producer services,manufacturing productivity is increased by 0.15%,while manufacturing FDI,investment in R&D and reduced manufacturing enterprises also have a positive impact on manufacturing productivity.Specific to the sub-sectors,the impact of the import of modern producer services on manufacturing productivity is significantly greater than that of traditional producer services.The import of transportation services,patents and concession services,insurance services and financial services have a significant impact on manufacturing productivity.Among them,the import of patent and concessions,insurance and finance have the greatest impact,indicating the necessity of importing these producer services.Based on the above conclusions,it is proposed to expand the import of producer services,optimize the import structure of producer services,promote the construction of finance and insurance services,determine a reasonable level of openness,increase investment in manufacturing R&D,and increase manufacturing FDI and promote competition among enterprises reasonably.