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Impact of Manufacturing Servitization on Factor Productivity of Industrial Sector Using Global Value Chain

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  • Jingxing Zhang

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

Abstract

The current study estimates the impact of manufacturing servitization on industrial productivity from the perspective of global value chain division. For this purpose, from 2000 to 2014, the study uses the World Input–Output Database (WIOD) to measure the servitization level of China’s manufacturing industry based on the non-competitive input–output model. Moreover, it develops a unified framework of source and structural differences in service factors and explores the mechanism and impact of manufacturing servitization on industrial productivity from the perspective of global value chain division. The results showed that if the division status of the manufacturing industry in the global value chain is higher, there will be a higher productivity effect of servitization. Regarding service factor country difference, foreign service factor input positively strengthened the industrial productivity effect, whereas domestic service factor input had no obvious effect on industry productivity. Furthermore, it was found that distribution and transportation services do not play a significant role in promoting industry productivity, whereas modern service factors such as information technology, finance, and business services have significant driving effects on industry productivity. The study suggests optimizing the layout of the industrial chain and improving the servitization of the manufacturing industry.

Suggested Citation

  • Jingxing Zhang, 2022. "Impact of Manufacturing Servitization on Factor Productivity of Industrial Sector Using Global Value Chain," Sustainability, MDPI, vol. 14(9), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5354-:d:805171
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    Cited by:

    1. Yuli Liu & Mingyi Shang & Jianwei Xu & Lei Zhang & Honglian Hua, 2023. "Value Chain and the Integrated Development of Manufacturing and Modernized Services: A Case Study of Shandong Province, China," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    2. Rongrong Zhou & Decai Tang & Dan Da & Wenya Chen & Lin Kong & Valentina Boamah, 2022. "Research on China’s Manufacturing Industry Moving towards the Middle and High-End of the GVC Driven by Digital Economy," Sustainability, MDPI, vol. 14(13), pages 1-30, June.
    3. Hongsen Wang & Qing Guo & Xianming Kuang, 2023. "Effects of manufacturing input servitization on labor income share and income distribution," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    4. Yong Chen & Zhengjie Wu & Wenchao Yi & Bingjia Wang & Jianhua Yao & Zhi Pei & Jiaoliao Chen, 2022. "Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions," Sustainability, MDPI, vol. 14(14), pages 1-26, July.

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