The Impact Of Producer Service Import Complexity On The Position Of Manufacturing In GVCs

With the in-depth development of economic globalization,the traditional manufacturing industry has changed from production-oriented manufacturing to service-oriented manufacturing,which effectively improves economic added value and competitiveness,thus enhancing the position of the manufacturing industry in the global value chain.The position in the GVCs has become an important measure of the development level of a country’s manufacturing industry.It has been a new direction for the manufacturing industry in all countries to upgrade industrial structure and enhance its GVC position.Numerous studies have verified the positive role of emerging productive services with higher additional value of technical content in promoting economic growth and enhancing the position of manufacturing value chain.Importing productive services can effectively make up for the shortcomings of domestic productive services and give full play to the positive role of productive services in the development of manufacturing industry.Existing researches mainly focus on the impact of the quantity of producer service imports on the position of manufacturing industry in GVC,but pay little attention to the quality.This thesis focuses on the participation of countries with higher level of economic development in global value chains.We select panel data of 22 countries or regions from WIOD to empirically study the impact of productive service import complexity on manufacturing GVC position.The empirical results show that: first,in the more developed economies,the productive service import complexity has no significant effect on the promotion of the position in global value chain.The increase of import complexity of traditional productive services will inhibit the improvement of GVC position,while the import of emerging producer services will improve GVC position.Second,in developed countries,the import complexity of traditional producer services inhibits the improvement of manufacturing’s global value chain status,while emerging producer services promote the improvement of manufacturing’s global value chain status.The result is completely opposite in developing countries.Thirdly,there is significant heterogeneity in the impact of producer services imports on GVCs.Based on the research results,this thesis provides suggestions for countries with higher level of development to enhance their position in GVCs.