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Research on the promoting effect of servitization on export technological sophistication of manufacturing enterprises

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  • Yuanhong Hu
  • Sheng Sun
  • Min Jiang
  • Yixin Dai

Abstract

Based on multiple micro databases involving Chinese manufacturing enterprises and World Input-Output Database, this article investigates the impact of China’s manufacturing servitization on export technological sophistication from 2000 to 2010. The results show that manufacturing servitization has an inverted U-shaped impact on export technological sophistication. From the perspective of heterogeneity at the enterprise level and industry level, manufacturing servitization has an inverted U-shaped impact on export technological sophistication for mixed trade enterprises, central and western located enterprises, domestic and foreign enterprises, and knowledge-intensive industries, the nonlinear impact is in the promotion range. Besides, manufacturing servitization with domestic and foreign service input source has an inverted U-shaped impact on export technological sophistication, manufacturing servitization with the domestic consumption-oriented service input source and foreign production-oriented service input source have a promoting effect. Servitization with financial industry and technical research and development service source has a promoting effect, while servitization with transportation service input source has an inverted U-shaped effect. Overall global value chain participation level and simple global value chain participation have a positive moderating effect on the impact, especially for enterprises with lower production efficiency. Mechanism analysis confirms that the "spillover" effect and "cost" effect are important channels for manufacturing servitization to promote export technological sophistication.

Suggested Citation

  • Yuanhong Hu & Sheng Sun & Min Jiang & Yixin Dai, 2021. "Research on the promoting effect of servitization on export technological sophistication of manufacturing enterprises," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-29, August.
    • Handle: RePEc:plo:pone00:0255891
    DOI: 10.1371/journal.pone.0255891
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    References listed on IDEAS

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    1. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 17(4), pages 578-599, August.
    2. Huang, Yi & Sheng, Liugang & Wang, Gewei, 2021. "How did rising labor costs erode China’s global advantage?," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 632-653.
    3. Heuser,Cecilia & Mattoo,Aaditya & Heuser,Cecilia & Mattoo,Aaditya, 2017. "Services trade and global value chains," Policy Research Working Paper Series 8126, The World Bank.
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    Cited by:

    1. Ewa Cieślik, 2024. "From traditional to digital servicification: Chinese services in European manufacturing," Networks and Spatial Economics, Springer, vol. 24(4), pages 927-965, December.
    2. 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.

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