Research Of Producer Services Development To Impact The Manufacturing Trade Gains

In recent years,the division of global value chain(GVC)has become the features and trends of world economy.The competition of national trade turns from large-scale export to trading with high marginal benefits.Meanwhile,the scale of manufacturing of China has rapidly expanded because of the competitive advantages of cheap labor cost.China has become more and more important in world global value chain(GVC)system.However,most manufacturing industries of China are more focus on low degree of global value chain system,processing and manufacturing,for instance.The developments of research,design and brand marketing and so on are extremely slow.So,increasing the degree of competition of Chinese manufacturing industry through strengthening development of intermediates of producer services industries can be one of the valuable choices.Based on the Comparative Advantages Theory,Global Value Chains Theory,International Trade Benefits Theory and Industrial Blending Theory,this study investigates the relationship between intermediates of producer services and manufacturing trade interests.Using the balance panel data of Chinese manufacturing industries during the period 2005 to 2014,this study provides the direct effect of intermediates of producer services and manufacturing trade interests.This study extends the existing literature in a number of ways.Firstly,the manufacturing industry is furtherly divided into 7 subindustries.Secondly,this study respectively tests the relationship between producer services and manufacturing trade interests in different industrial agglomerations(labor,technology and capital).The results concluded that the development of different production service have different paths of influence on different industrial agglomerations.Based on the existing literature and the empirical results,this study highlights several important issues for policy market in China.Firstly,the government should build an optimal environment of trading for producer services and manufacturing industry.Secondly,strengthen the introduction of foreign advanced technology and experience.Thirdly,improve training mechanisms of related professional worker and managers.Fourthly,increase competition of manufacturing industry through non-core business outsourcing.