Contemporary Finance & Economics ›› 2018, Vol. 0 ›› Issue (11): 52-.

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Servicization Development and the Status of Manufacturing in GVC: Influencing Mechanism and Threshold Effects

LUO Jun   

  1. (Wenzhou University, Wenzhou 325035, China)
  • Received:2018-07-12 Published:2021-01-21

Abstract: Servicization is the feasible path for the manufacturing industry to climb in the GVC. This paper explores the influencing mechanism of servicization on the status of manufacturing in GVC from such aspects as resource allocation, technological innovation and cost reduction, it also analyzes the moderating effects of producer services efficiency and trade liberalization on the impact of servicization on the status of manufacturing in GVC. By making use of the WIOD database and other related data, it conducts an empirical test of the relationship between China’s manufacturing servicization and the status of manufacturing in GVC. The results show that:firstly, through servicization transition, the manufacturing industry has promoted its status in the GVC, but this promotion effect is different among the manufacturing industries with different factor intensities; secondly, servicization has promoted the status of manufacturing in GVC through resource allocation and cost reduction, but it has not promoted the upgrade of GVC status of labor intensive manufacturing through technological innovation channels; thirdly, the efficiency of producer services plays an important role in the impact of servicization on manufacturing status in GVC, there exists a threshold effect in the producer services efficiency; fourthly, trade liberalization plays an important role in the impact of servicization on manufacturing status in GVC, there exists a threshold effect of tariff rate.

Key words: servicization of manufacturing; GVC; producer services; trade liberalization