The Impact Of Servitization Of Manufacturing On Trade Benefits

With increasing participation in Global Value Chain,China has achieved rapid growth in export trade of manufacture relied on traditional factor endowments.However,its trade benefits have not improved accordingly,which has forced China to face the severe dilemma of economic growth,trade and environment pressure.How to improve the economic and environmental benefits of China through exports has become an important subject which needs urgent research.The servitization of manufacturing in this paper refers to an increased proportion of service elements in manufacturing input.Service-oriented strategy of the manufacture may become an important way to upgrade manufacturing structure.Based on the above logic,this article analyzes the theoretical mechanism of how servitization affects trade benefits.Using the input-output data of 42 countries during 2005-2014 and the carbon emission data of the CAIT database,this paper has measured the manufacturing servitization and trade benefits level of these countries.Empirical tests on the trade benefits effect of servitization are conducted.Furthermore,this paper expands its analysis from the perspective of mediation effects of innovation capabilities and heterogeneous services.The results of this article show that:Firstly,servitization can increase the domestic value-added rate of a country's manufacturing exports and at the same time play a significant trade carbon reduction effect.After considering the environmental cost,servitization can still promote trade benefits,which is strongly robust.Secondly,innovation plays a mediating role between servitization and trade benefits.Service input could accelerate the transformation of scientific and technological achievements,which will also increase the resource utilization rate and reduce the environmental cost of tradeThirdly,distribution service,financial service and science and technology service can significantly improve a country's trade welfare.However,transport services and telecommunications services have a non-negative impact on CO2 emissions embodied in exports.In addition,the increase of service input from domestic of developed country has a greater effect on economic welfare than that of developing countries,and there is strong potential of developing countries to reduce CO2 emissions through servitization.