Nankai Economic Studies, 2017, Issue 3

Authors: Lü Yue, Li Xiaomeng and Lü Yunlong

Abstract: With the increasingly deepening of global value chain, servicification has become a significant global trend, and far-reaching impacts on the international competitiveness. We use Chinese Industrial Enterprises Database, China Customs Trade Database and World Input-Output Database(2000-2006) to consolidate the more refined data, with using input-output analysis to do the empirical analysis of the effect of servicification in global value chain on productivity of China’s firm. First, when the higher embedded in global value chain, servicification plays more important role in improving firms’ total factor productivity. Second, the effect of investment in telecommunications services on firms’ TFP is largest, followed by the financial sector. Finally, the reallocation effect of outsourcing is confirmed in our study.

Keywords: Global Value Chain; Servicification; Productivity; Firm