Abstract
This study examines the industrial transmission mechanisms between producer services imports and manufacturing advantages in RCEP economies. Based on the framework of GVCs’decomposition, we establish a hierarchical linear model (HLM) withthe data from 2007 to 2017 in the ADB MIRO, WTO BaTiS and WITS databases to analyze the impact of producer services imports in RCEP economies on the value-added domestic exports of manufacturing in countries around the world, and the conclusions are as follows: (1) Producer service imports have a significant positive impact on the domestic value-added of manufacturing exports through direct effects, upstream effects and downstream effects. The downstream effect is the main driving force for the improvement of manufacturing. After using instrumental variables to resolve endogeneity, the conclusion remains stable; (2) The downstream effect of insurance imports is the largest among producer services imports. After the outbreak of the world financial crisis, the transmission effect of the industry chain was higher in 2008 than before the crisis. (3) Due to the high degree of specialization of industrial division in developed economies, the transfer effect of the three major industrial chains is greater than that of developing countries and regions.
Highlights
Since being officially signed, RCEP has formed the world’s largest free trade agreement
Total value of intra-regional trade was 10.4 trillion US dollars, accounting for 27.4% of global trade [1]. Producer services such as finance, communication and computer services are increasingly becoming new engines to break through the low-end locking of the global value chain (GVC) and reshape the comparative advantage of manufacturing because of their specialization, knowledge spillover effect and economies of scale
A multi-level linear model is established in this paper based on the WIOD (World Input-output Database) 2016, WTO BaTiS database and WITS (World Integrated Trade Solution) data, it has been proved that the import of producer services has a positive impact on the domestic value added in manufacturing exports through industrial association
Summary
RCEP has formed the world’s largest free trade agreement. In the choice of Mode 1 (cross-border delivery) and Cross-border 3 (commercial presence), the more high-end service providers tend to choose commercial presence to approach the final consumers, and the foreign elements will be jointly produced with local elements to meet the customized needs of high-end consumers It will increase the demand for local factors of production and bring obvious "upstream spillover effect". A multi-level linear model is established in this paper based on the WIOD (World Input-output Database) 2016, WTO BaTiS database and WITS (World Integrated Trade Solution) data, it has been proved that the import of producer services has a positive impact on the domestic value added in manufacturing exports through industrial association. We will pursue to explore how the spatial factors impact the causality between producer services imports and manufacturing exports
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