Summary:
Since the 1980s, global value chains (GVCs) have changed the pattern of international trade by decomposing production across borders. With the development of technology, the servitization of manufacturing has become an important trend in the development of the manufacturing industry. Services not only act as intermediate inputs in the manufacturing industry's production process (creating value added for the manufacturing industry) but also increase the market value of manufacturing products along with sales of the industry's final products. Therefore, services may positively affect GVC production in the manufacturing industry. A report issued by the World Bank points out that due to the increasingly close connection between the commodity and service economies, researchers should pay more attention to a series of business services, such as communication, finance, and transportation, that support the manufacturing industry. In 2022, the China Banking and Insurance Regulatory Commission proposed that “to improve the professional level of financial services, banking and insurance institutions should combine their market positioning and development planning, and incorporate better services to the manufacturing industry into corporate strategy.” In the manufacturing value chain, financial services act like glue that is used to optimize the allocation of resources and plays a vital role in the overall operation of the manufacturing value chain. There is a need for more research linking financial services with manufacturing GVCs and exploring their impact mechanisms. Accordingly, this paper explores the direction and mechanism of domestic financial services' impact on the upgrading of the manufacturing industry's GVC with different input intensities of financial services. Based on the above-described research, we further explore the impact of the opening of financial services on upgrading of the manufacturing industry's GVC. By constructing a theoretical model with sectoral linkages, this paper incorporates financial services and the GVC of manufacturing sectors under a unified framework and studies the impact of domestic financial services on the upgrading of the GVC of manufacturing and its impact mechanism. Next, we use the Asian Development Bank's input-output data of 14 manufacturing sectors in 45 countries from 2007 to 2018 to conduct an empirical test. Improvement in the development of domestic financial services has a positive effect on the GVC position of the manufacturing industry with high input intensity of domestic financial services, mainly through the mechanisms of accelerating the digital transformation of manufacturing production processes and encouraging the manufacturing industry to increase its engagement in research and development and design-related production. For industries with a high input intensity of domestic financial services, the increase in the degree of the opening of financial services has a significant negative impact on their GVC position. The higher the degree of the opening of financial services, the stronger the role of domestic financial services in improving the industry's GVC position. For manufacturing industries with a low input intensity of domestic financial services, the impact of domestic financial service development on its GVC position is non-significant, and the increase in the degree of opening of financial services can help improve their GVC position. Foreign financial services can help compensate for this industry's lack of domestic financial services. Our marginal contributions are as follows. First, we provide a theoretical basis for studying how domestic financial services affect the global value chain position of the manufacturing industry. We incorporate financial services into the model framework of GVC production, construct a production theory model with sectoral production linkages, and describe the impact mechanism of domestic financial services on the upgrading of the manufacturing industry's GVC. Second, we improve, at least to an extent, how the input intensity of service in the manufacturing industry's GVC activities is measured. Because the value added of the manufacturing industry cannot fully reflect the characteristics of its GVC activities, we measure the internal relationship between financial services and the manufacturing industry's GVC activities by using the proportion of the input of value-added in financial services to the value added of the manufacturing industry's GVC activities. Third, we analyze the impact of domestic financial services and the degree of openness of financial services on the manufacturing industry's GVC position with different input intensities of financial services. We explore the impact mechanism of domestic financial services on the manufacturing industry's GVC position. To a certain extent, we enrich the conclusions in the research on how domestic financial services affect the upgrade direction of manufacturing global value chains.
张天顶, 魏丽霞. 金融服务发展与制造业全球价值链升级[J]. 金融研究, 2023, 513(3): 20-37.
ZHANG Tianding, WEI Lixia. Financial Service Development and Global Value Chain Upgrading of Manufacturing Industry. Journal of Financial Research, 2023, 513(3): 20-37.
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