Research On The Impact Of FDI In Productive Services On China’s Manufacturing Asia-Pacific Value Chain Position

At present,the centre of the world economy is gradually shifting eastwards,and the Asia-Pacific region has become a global economic and trade centre.The links between the Asia-Pacific region are getting closer and closer,and China’s manufacturing industry has become a manufacturing processing centre in the Asia-Pacific region by virtue of its quality and inexpensive labour force as well as its vast market space.However,with the participation of emerging economies in the Asia-Pacific region such as the Philippines,which has a higher labour advantage than China,and the "re-industrialisation" of developed countries such as the United States,which is returning to high-end manufacturing,China’s manufacturing industry is facing resistance to upgrading in the Asia-Pacific value chain.As the global industry continues to refine,the productive services sector is gradually separated from the manufacturing industry and exists as an intermediate input,so its development may have an impact on China’s manufacturing industry,helping it to grow from strength to strength.This paper thus investigates the channel paths and mechanisms of the impact of productive services FDI on the Asia-Pacific value chain division of labour status of China’s manufacturing industry.In order to explore the relationship between productive services FDI and the Asia-Pacific value chain of China’s manufacturing industry,this paper uses the OECD-TIVA database and relevant data from the China Statistical Yearbook,China Statistical Yearbook of Industrial Economy and China Statistical Yearbook of Science and Technology,etc.On the assumption that productive services FDI will have an effect on the upgrading of the Asia-Pacific value chain of manufacturing industry,it introduces the level of R&D,the degree of opening up of the economy to the outside world,and the level of human capital,three control variables are introduced,a linear benchmark model is constructed based on panel data of 17 manufacturing industries in China from 2005-2018,and a FLGS model is used for regression to investigate whether there is an impact of productive service industry FDI on the upgrading of the Asia-Pacific value chain status of China’s manufacturing industry,and robustness tests,endogeneity tests and sub-industry heterogeneity analysis are conducted.After systematically analysing the contents of the previous study as well as the empirical results,the final conclusions are drawn: firstly,productive services FDI has a significant contribution to the upgrading of the Asia-Pacific value chain status of the manufacturing industry through horizontal and vertical influences;secondly,there are differences in the effects of different productive services FDI on the upgrading of the Asia-Pacific value chain status of the manufacturing industry;thirdly,the inflow of productive services FDI has a significant impact on different types of Third,the impact of FDI in productive services on the upgrading of different types of manufacturing industries in the Asia-Pacific value chain is different.Finally,the policy recommendations for the upgrading of China’s manufacturing industry in the Asia-Pacific value chain are put forward in a targeted manner.This study is of great significance to China’s manufacturing industry in transforming its economic structure,promoting the improvement of production efficiency and independent innovation capability,realising the progress from a large manufacturing country to a strong manufacturing country,and enhancing the status of the Asia-Pacific value chain.