Economic Research Journal, 2016, Issue 3

Authors: Liu Bin, Wei Qian, Lü Yue and Zhu Kunfu

Abstract: Based on the combined data of the input-output table, China’s industrial firms and customs import-export data, this paper systematically analyzes the impact of servitization of manufacturing on the enterprise value chain upgrading. The results indicate: Firstly,servitization of manufacturing encourages China’s firms to participate in global value chain, and raise the China firm’s status of global value chain. From the perspective of the heterogeneity of service factor input, value chain upgrade effect of transport servitization, financial servitization and distribution servitization is more obvious. While value chain upgrade effect of telecom servitization is not significant, so policy makers need to pay more attention to reform process of telecom servitization; Secondly, using the micro enterprise data, we investigates the impact of product upgrade by servitization of manufacturing. The results show that servitization of manufacturing improves the quality of export enterprise products by vertical effect (product quality) and horizontal effect (product technical complexity). Trans-provincial service factor input has important impact on the enterprise product upgrading. Servitization of manufacturing is the key for China export firms to break the low-end locking of value chain and establish new advantages of export competition in the period of Chinese economic transition.

Key Words: Servitization of Manufacturing; Global Value Chain; Product Upgrade; Heckman Model