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Web of Proceedings - Francis Academic Press

Service-Oriented Manufacturing Input in China and its Moving-up in the Global Value Chain

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DOI: 10.25236/iwass.2019.020

Author(s)

Jiajie Li, Tongtong Xu

Corresponding Author

Tongtong Xu

Abstract

Based on the cross-industry panel data of China's manufacturing sector from 2000 to 2014, this paper measured and analysed the impact of China's manufacturing industry's servitization on China's global value chain climb from the perspective of manufacturing industry's servitization. The empirical study finds that :(1) the input of service factors has a significant positive effect on the global value chain climb of China's manufacturing sector; (2) after further distinguishing the sources of service factor input, it is found that domestic service factor input still has a significant positive effect on the global value chain climb of China's manufacturing industry, while the effect of imported foreign service factor input on the global value chain climb of China's manufacturing industry becomes insignificant; (3) after distinguish the heterogeneity of the service elements found that domestic elements into capital-intensive and labour-intensive and technology-intensive, rise of global value chain in China has significant positive effect, but the effect of different levels: capital-intensive service elements into higher impact on the global value chain of China is the largest, the second is technology intensive service elements, the last is labour-intensive service inputs.

Keywords

Service-oriented manufacturing input; Global Value Chain; Upstream degree of industry