Research On China's Service Industry Embedded In Global Value Chain

With the rapid development of global value chain division,it has become the main form of international production and trade.Its development and restructuring has been widely extended to the service sector.The global industrial structure is changing to a service-oriented economy.Service industry has gradually become the key to determine the international competitiveness of countries.In recent years,our government has also issued a number of policies and measures to promote the development of service industry,but the development of service industry is still relatively lagging behind.In this context,in order to achieve the goal of optimizing industrial structure and enhancing international competitiveness and moving from an "economic power" to an "economic power",China must keep abreast of the global development trend,seek to upgrade to the high end of the value chain,further accelerate the development of the service industry and continue to embedded in the global value chain.At the same time,the existing value chain theory mainly focuses on the production and trade of manufacturing or manufactured goods,while the research on service and its position,function and role in the value chain is relatively inadequate.Based on this,this paper uses the latest edition of the World Input-Output Database(WIOD)published by the European Union in 2016 to measure the input downstreamness of China's front-end services and the output upstreamness of the back-end services,and constructs different economic explanations from the existing studies to better match the value chain theory.By exploring the evolution track of the two service chains and the auxiliary function of different service links to the production chain,this paper further studies the different factors affecting the downstream degree of front-end input and the upstream degree of back-end output,and finally looks at how the service industry promotes the upgrading of China's value chain from the perspective of global value chain.The main conclusions are as follows: Firstly,the input downstreamness of front-end services shows a "inverted U" trend of fluctuating growth,and a "scissors gap" trend with the length of the production chain.Among them,the downstream degree of input from scientific research and development,financial services activities and other departments is relatively high and showing an upward trend.Secondly,the upstream degree curve of the back-end output shows a "straight line" trend of steadyfluctuation growth,and a "parallel curve" trend of synchronous change with the length of the production chain.Among them,the upstream degree of the output of the circulation and transportation services is relatively high and shows an upward trend.Thirdly,the growth curves of the front-end input downstream and the back-end output upstream show a relatively large "electrocardiogram" change trend,which is roughly divided by 2006,and the growth curves of the two show obvious asynchronism.Fourthly,factor conditions have a greater and significant positive impact on the downstream degree of front-end input,and market factors have a greater positive impact on the upstream degree of back-end output;the length of production chain has a positive relationship with the downstream degree of front-end input and the upstream degree of back-end output,but has a greater impact on the front-end;the institutional environment(openness)has a significant reverse effect on the upstream degree of back-end output.The relationship has no significant effect on the downstream degree of front-end input.Fifthly,the extension of the downstream degree of front-end input is beneficial to the increase of value-added rate.Compared with the fixed nature of the back-end service industry limited by geographical space,the extension of the upstream degree of back-end output is not obvious to the increase of value-added rate.Based on the above conclusions,we find that the length of the value chain of front-end and back-end services in China has been extended during the period of investigation,and the speed and depth of the embedding of front-end services in global value chain is greater than that of back-end services.This is mainly due to the extension of the length of production chain in China.In fact,the path of the development space of service chain expands with the decomposition of links in the production chain and the change of spatial location.The study finds that China's service industry has indeed developed,while the degree of embedding in the global value chain is deepening,showing a trend of gradual upgrading.Focusing on the development of front-end service industry is more conducive to the optimization and adjustment of industrial structure,the increase of value-added rate and economic growth,thus further conducive to the implementation of China's high-quality development strategy and the rise of status in the global value chain.Finally,according to the above conclusions,this paper puts forward relevant policy recommendations for China's GVC-oriented industrial policy formulation.