Impact Of China's Foreign Direct Investment In Producer Services On Export Technical Complexity Of Manufactured Goods

In recent years,the developed countries led by the United States put forward the development strategy of manufacturing back,reintroduced the manufacturing industry into the domestic.They aim to promote the development of high-tech advanced manufacturing industry especially and seize the international market.The developing countries that originally relied on the manufacturing transfer of developed countries faced huge competitive pressure,especially for China,which undertook the manufacturing transfer of many developed countries.On the contrary,in China,with the slow growth of population,the aging of population,the rising prices of land and other factors of production,the original demographic dividend and the advantages of factors of production are gradually reduced.In addition,China's forward export is mainly processing trade,with low technology content,which is at a disadvantage in international trade.When this external competition and domestic pressure were concentrated,the government of China launched the "Michel plan" which is suitable for Chinese own situation.It persisted in opening to the outside world in an all-round way,promoting the construction of "the Belt and Road" and strengthening the economic cooperation with the developed economies.By these,China can enhance its position in the international division of labor and the complexity of China's export technology.The transformation from a manufacturing power focusing more on quality to a manufacturing power focusing more on quantity,which will help China's economic development in the new normal state.In the new period,how to improve China's position in the international value chain,as well as how to improve the technical complexity of export products,and improve trade returns,has theoretical and practical significance.How to break through the traditional manufacturing mode and improve the technical complexity of exports? After reading a lot of literature and considering the linkage between upstream and downstream industries,the author finds that producer services,which provide intermediate products and services for the manufacturing industry,have a significant role in promoting manufacturing technology.The technology spillover brought by FDI in producer services helps the products' Export technology complexity increase.When the FDI in traditional manufacturing industry presents a relatively large downward pressure,the FDI in producer services industry has increased rapidly in recent years.In 2017,the proportion of FDI in producer services industry in all FDI reached 45% and the growth rate reached 25%.In this background,it is of great significance to study the impact of FDI in producer services on China's export competitiveness and export technology complexity.After combing through a large number of domestic and foreign references,this paper first analyzes the impact of producer services on improving the technical complexity of China's manufactured exports from a theoretical perspective,mainly involving comparative advantage theory,new trade factors theory,FDI technology spillover theory,industrial relevance theory,value chain theory,and new new trade theory.Secondly,from the analysis of the influence mechanism of the former on the latter.Based on the theoretical model,this paper mainly expounds the technologyspillover effect of FDI and the reduction of manufacturing enterprise cost.Using the data from China and the provincial Statistical Yearbooks and the foreign economic database from drcnet.com,this paper describes and analyzes the current situation of FDI of producer services and the technical complexity of manufactured products.It can be seen that the FDI of China's producer services and export technical complexity of manufactured products have achieved rapid development,but there are obvious differences in the development of regions with different economic levels.The eastern region is significantly higher than the central and western regions in terms of attracting foreign investment and self-export technology complexity,but the gap between the central and western region and the eastern region is becoming smaller.Finally,in the empirical part of this paper,we make the regression of fixed effect model and the regression with tool variables to study the influence of productive services on manufactured export technology complexity.The influence of the former on the latter is studied from three levels of the country,industry and region respectively.Through the regression results,we can see that at the national level,in all regions,FDI in producer service industry can significantly improve the technical complexity of China's exports of manufactured goods,but the effect of central and western region is higher than that of eastern region.In the analysis of producer service industry,the regression coefficient of high technology producer service industry is significant,while that of traditional industry is not significant.Therefore,this paper finally gives some suggestions,suggesting that the state should provide preferential policies for foreign investment in producer services,and attract international well-known enterprises in the financial industry,information computer software industry and scientific research industry to invest in China.Especially for investment in the central and western region.In addition,the paper also suggests that the government should support the local production enterprises,and continue to invest in education and scientific research,increase the overall production efficiency and technical level of Chinese production enterprises,including export production enterprises,and improve the technical complexity of Chinese manufactured products export.