Manufacturing Service Industries Research Articles

Financial Sector Liberalisation and the Climbing of Manufacturing GVCs

The National 14th Five-Year Plan and 2035 Vision Outline emphasise the need to promote the integration of China's manufacturing industry and service industry, so as to achieve the upgrading of China's manufacturing industry to the high end of the global value chain. Based on the OCED input-output data and the World Bank STRD data, the study empirically explores the impact of financial sector openness on the upgrading of the manufacturing industry's global value chain by using the global multiregional input-output model and the panel model. The study finds that both the quantity and quality of financial sector openness have a significant effect on the upgrading of manufacturing GVCs, with the quality of financial sector openness having a more pronounced effect, and this conclusion still holds after considering robustness; accordingly, it puts forward policy recommendations for financial sector openness to promote the upgrading of manufacturing GVCs.

Synergistic industrial agglomeration, new quality productive forces and high-quality development of the manufacturing industry

This study analysed the impact of the mechanism of the synergistic agglomeration of manufacturing and modern service industries on the high-quality development of the manufacturing industry using the entropy value method, coupling coordination degree, and E-G index. We utilised panel data of 30 provinces and cities in China from 2012 to 2022. The study found that synergistic agglomeration significantly promotes the high-quality development of the manufacturing industry, in which ‘new quality productive forces’ play a key intermediary effect, while the innovation ecosystem has direct and indirect moderating effects on the relationship between the two. Simultaneously, industrial synergistic agglomeration, development of new productivity, construction of innovation ecosystems, and high-quality development of the manufacturing industry in all provinces and cities showed a steady increase; however, there were significant differences between regions. Based on the findings of the study, policy recommendations are suggested to further promote the synergistic development of the manufacturing industry and modern service industry. At the policy level, the government should strengthen the guidance and support of industrial synergistic agglomeration and formulate differentiated policies to promote industrial synergistic agglomeration; simultaneously, it should pay attention to the cultivation of new productivity and the construction of innovation ecosystems, optimise the allocation of innovation resources, and stimulate the vitality of innovation. At the industrial level, manufacturing enterprises should actively cooperate with modern service enterprises to achieve resource sharing and technological complementation; modern service industries should improve service quality and efficiency to meet the needs of manufacturing transformation and upgrading; and close cooperation between the industry, academia, and research institutes should be established to promote technological innovation and industrial upgradation.

Spatial Relationship of Inter-City Population Movement and Socio-Economic Determinants: A Case Study in China Using Multiscale Geographically Weighted Regression

In the current field of regional studies, there is a growing focus on regional spatial relationships from the perspective of functional linkages between cities. Inter-city population movement serves as an embodiment of the integrated functionality of cities within a region, and this is closely tied to the socio-economic development of urban areas. This study utilized Location-Based Services (LBSs) to collect the scale of inter-city population movement across 355 cities in China. Additionally, socio-economic data published by local governments were incorporated. By establishing a Multiscale Geographically Weighted Regression (MGWR) model, this research explores the spatial relationships between inter-city population movement and socio-economic influencing factors in China. This study aims to elucidate the spatial scales of the relationships between various variables. Our research findings indicate that the relationship between inter-city population movement and potential socio-economic determinants exhibits spatial non-stationarity. It is better to explore this spatial relationship through the MGWR model as there are different determinants operating on inter-city population movement at different spatial scales. The spatial distribution of the coefficient estimates shows significant regional differences and numerical variations. In China’s economically developed coastal regions, there is relatively balanced development among cities, with advanced manufacturing and producer service industries acting as significant drivers of mobility. In inland regions of China, city size is the most influential variable, directing a substantial flow of human and economic resources towards regional socio-economic hubs such as provincial capitals. The main contribution of this study is the re-examination of the relationship between inter-city population movement and socio-economic factors from the perspective of spatial scales. This approach will help China to consider the heterogeneity of different regions more extensively when formulating regional development policies, thereby facilitating the targeted promotion of regional element flow.

How do corporate governance, artificial intelligence, and innovation interact? Findings from different industries

Research in the field of corporate governance has been exhaustive, and recently many scholars have focused on the relationship between corporate governance attributes and artificial intelligence (AI), corporate governance attributes, and corporate innovation (Asensio-López et al., 2019), however, there are few studies that combine corporate governance, AI, and corporate innovation. This article examines the relationships among corporate governance attributes, AI, and corporate innovation. Adopting a new perspective, we have tried to help resolve this issue using a content-analysis that integrates data from over 50 companies that trade on National Association of Securities Dealers Automated Quotations (NASDAQ) to analyze the relationship between board attributes, the practice of AI and firm innovation for the time 2018–2022. The results suggest that particular aspects of boards, such as board size, board diversity, and ownership concentration show significant correlations with firm AI development and innovation for overall industries, but the levels of associations also vary depending on different innovation measurements and samples considered in specific industries. Corporate governance has more significant variables in the manufacturing and information technology service industries. Moreover, the mediating effects of AI and innovation are examined, respectively. This research offers implications to corporate decision-makers as to how to proceed if the intent is to offer commercialized AI advancements and successful breakthrough innovations.

The impact of collaborative agglomeration of manufacturing and producer services on carbon emission intensity: Influence mechanism and spatial effect.

Under the goal of " carbon peaking and carbon neutrality," how to create a low-carbon and green development path for cities is an urgent problem in China. One of the effective ways to solve this problem is through industrial collaborative agglomeration. In this paper, panel data of 276 prefecture-level cities in China from 2010 to 2020 was selected to investigate the relationship between the collaborative agglomeration of manufacturing and producer service and carbon emission intensity by using a fixed-effects model, intermediary model, and SDM in multiple dimensions. The study found that the collaborative agglomeration of manufacturing and producer service industries significantly influences carbon emission intensity with an inverted U-shaped curve, and the agglomeration of manufacturing and producer service industries can influence carbon emission intensity through technological progress. In addition, the inverted U-shaped impact of collaborative agglomeration of manufacturing and producer services on carbon emission intensity has a spatial spillover effect, and the spatial spillover effect generated is stronger than the impact on the local area. Moreover, from the perspective of industry heterogeneity, compared with low-end producer services, the agglomeration of manufacturing and high-end producer services can play a better role in carbon emission reduction. Regarding regional heterogeneity, compared with the central and western regions, the impact of manufacturing and production services agglomeration on carbon intensity is far more obvious in the more economically developed eastern regions.

The linkage misalignment of productive services and firms' domestic value-added ratio——Evidence from Chinese micro-firm data

Promoting the deep integration of advanced manufacturing and modern service industries is essential for enhancing the competitiveness of manufacturing enterprises, cultivating a modern industrial system, and achieving high-quality, sustainable development; however, the low allocation efficiency of productive service resources has led to an extremely limited, long-term process in enhancing China's manufacturing industries' competitiveness. Based on scientific quantification of productive service linkage, this study uses micro level data from China to empirically test its impact and mechanism on the domestic value-added ratio of enterprises' exports. The results reveal a relatively high degree of mismatch of productive service input in China, which primarily reduces enterprises' domestic value-added ratio through import induced and markup reducing effects. The conclusions remain highly consistent across benchmark regression and further robustness tests, including instrumental variable estimation and a quasi-natural experiment. Further analysis reveals that enterprises in regions with a higher degree of marketization, firms facing tighter financing constraints, those with smaller gaps from the technology frontier, and enterprises in industries with comparative advantages are more easily influenced by productive services linkage misalignment. Finally, this study proposes targeted policy recommendations based on the research findings.

Does the Digital Economy Promote Industrial Collaboration and Agglomeration? Evidence from 286 Cities in China

Relying on high penetration and strong diffusion capabilities, the digital economy is becoming a new driving force for industrial integration and development. It is of great significance to promote the coordinated development of manufacturing and producer services. This paper took panel data on 286 prefecture-level cities and above in China from 2011 to 2019 as its research object, and used the two-way fixed effect model, threshold effect model, and the Spatial Durbin Model (SDM) as its econometric testing methods. This analysis explored the impact of the digital economy on the synergetic agglomeration between manufacturing and productive service industries in China. The results of the research showed that the synergetic agglomeration of industries is significantly promoted by the digital economy. This conclusion was still valid after an endogeneity test was carried out. The digital economy’s role was found to mainly involve promoting knowledge spillovers and expanding the market size. An in-depth analysis of the digital economy has enabled the collaborative agglomeration of manufacturing and producer services in large, medium-sized, and small cities. The digital economy had the greatest effect on small cities, followed by medium-sized cities and large cities. The synergetic aggregation between the manufacturing and high-end producer services industries is significantly promoted by the digital economy. However, it was not found to have had a significant effect on the synergetic agglomeration between the manufacturing and low-end producer services industries. The impact of the digital economy on industrial collaborative agglomeration is nonlinear. Only when the level of the digital economy exceeds the threshold can the promoting effect of the digital economy on industrial collaborative agglomeration be manifested. In summary, the development of the digital economy was found to have promoted industrial collaboration and agglomeration in the study areas and their neighboring regions in the study period. The research results of this article are of great significance for achieving the goal of the “two-wheel drive” of the manufacturing and producer services industries, as well as high-quality economic development in China.

Modernizing one-size-fits-all policy for haze pollution from enterprise registration big data: Spatial effects of industry activities

Haze pollution is one of the most serious environmental problems in China. In order to promote economic development and protect the environment, the Chinese government has made many attempts. One of them is the one-size-fits-all policy adopted by some local governments in the face of haze pollution, which has disrupted the normal operation of the economy. This study attempts to use the enterprise registration information of Chinese enterprises from 2005 to 2018 to explore the relationship between industrial activities and haze pollution through a spatial econometric model. From a macro perspective, the manufacturing industry and service industry have a significant impact on haze pollution. From sub-industry perspective, manufacture has a significant impact on haze pollution. The service industries such as accommodation and catering, wholesale and retail, and real estate have a positive impact on haze pollution. We further investigate the sub-manufacture industry and find not all sub-industries increase haze pollution. The one-size-fits-all policy should be modernized into one-industry-one-treatment approach, instead of blindly reducing manufacturing and increasing the service industry. In addition, the urbanization rate has an inverted U-shaped relationship with haze pollution, which supports the EKC hypothesis.

Enablers for Adopting Restriction of Hazardous Substances Directives by Electronic Manufacturing Service Providers

The Electronic Manufacturing Service (EMS) industry contributes significantly to toxic waste generation due to its fabrication processes. Notably, adherence to the Restriction of Hazardous Substances (RoHS) Directive varies amongst EMS providers, despite its aim to reduce electronic waste. This study explores the factors influencing EMS providers’ decision to adopt the RoHS directive, utilizing the technology–organization–environment (TOE) and the human–organization–technology (HOT) fit, or the TOE-HOT fit framework. We validated our framework using partial least squares structural equation modeling (PLS-SEM), based on responses from 379 questionnaires from major EMS providers. The results demonstrated that expert resources, adequate resources, perceived industrial pressure, institutional pressure, and costs were positively associated with RoHS adoption. However, innovation, relative advantage, and verification ability were identified as significant barriers. In particular, innovation in the human dimension was the key determinant for RoHS adoption. Therefore, clear policy instruments and regulations may enhance RoHS adoption by EMS providers. These findings can guide environmental policy definitions in governmental laws and strategies, encouraging EMS providers and other firms to adopt RoHS standards.

Influence of Integration of Advanced Manufacturing and Modern Service on Regional Economic Development

Purpose - Manufacturing is closely linked to productive services, with cross-infiltration between the two industries, blurring industry boundaries, emerging new industries and models, and a clear trend of deep integration. The integrated development of manufacturing and productive service industry not only helps to solve the difficulties faced by the manufacturing industry but also promotes the transformation and upgrading of the service industry.
 Design/Methodology/Approach - The historical origin of manufacturing and the productive service industry is revealed by summarizing and commenting on relevant literature at home and abroad.
 Findings - This paper analyzes the regional differences in China’s industrial integration development and reveals the composition and origin of the differences. The research on the spatial spillover effect of manufacturing and productive services integration is still limited to the spatial correlation model of the first-order adjacency matrix. Based on the adjacent space weight matrix, geographical distance space weight matrix, and economic distance space weight matrix, this paper constructs the spatial Durbin model.
 Research Implications - The theoretical research and measurement of the convergence degree between manufacturing and productive service industries and the related problems of the factors of the convergence development are summarized. Secondly, the development level of the two industries in China is measured by constructing the evaluation index system based on the coupling coordination model.

Analysis of the Position of China Information Industry in the Global Value Chain

Identifying the division of labor position of China information industry in the global value chain is particularly important for optimizing the structure of China's information industry and improving its overall competitiveness. The article calculates the global value chain revenue generated by the participation of the information industry in the global value chain division of labor production in various countries, and then establishes a global value chain height index to analyze the global scale and development of China information industry; Analyze the degree of vertical specialization of the information industry through the decomposition of international trade flows, and finally calculate the global value chain status index of the information industry in different countries. The results indicate that: (1) the value chain height index of China's information manufacturing industry is continuously decreasing, at the level of middle and lower reaches; The telecommunications industry and computer programming industry in China information service industry are in an upstream position in the value chain. (2) There is an imbalance in bilateral trade between China and the United States in information manufacturing and information service industries. Compared to the United States, China information industry has a lower value chain position. The United States mainly engages in research and development, design, and other work, while China is more engaged in less value-added work such as assembly and reprocessing. (3) From the global value chain status index, China information manufacturing industry is at the middle and lower reaches of the world, with Japan firmly ranking first and the United States second. The ranking of other developed countries is basically in the top 20, fluctuating between the middle and upper reaches. The position of China's information service industry in the global value chain is at the mid to upper level. Russia, Japan, and the United States are among the top three countries in the global value chain of the information services industry, while developed countries such as the UK, France, and Germany are in the upper reaches of the information services industry.

The Impact of Digital Economy on the High-Quality Development of Manufacturing Industry -- An Empirical Study Based on 277 Cities in China

The digital economy has contributed to new growth points in the high-quality development of industrial manufacturing in the context of the swift advancement of information technology. It has emerged as the primary force behind contemporary high-quality economic development. This study builds a mediation effect model for regression analysis using panel data from 277 prefecture-level cities in the nation from 2006 to 2019. It uses the urbanization rate as the mediating variable. It then examines the path mechanism for the impact on developing the digital economy and high-quality manufacturing. The empirical results show that the digital economy significantly promotes the high-quality development of China's manufacturing industry. At the same time, the digital economy can promote the high-quality development of China's manufacturing industry by increasing the urbanization rate. For different levels of cities in China, the urbanization rate has different effects on the high-quality development of the manufacturing industry. Therefore, government departments and manufacturing enterprises need to increase their investment in science and technology to enhance the digital level of intelligent manufacturing in the manufacturing service industry to form a two-way integration and coordinated development of science and technology and the real economy.

The Impact of Industrial Agglomeration on Urban Land Green Use Efficiency and Its Spatio-Temporal Pattern: Evidence from 283 Cities in China

Industrial agglomeration is one of the primary driving factors in city creation, and the improvement of urban land green use efficiency (ULGUE) is an important part in green development. This study concentrates on the impact of industrial agglomeration on ULGUE in the process of urbanization. Based on the panel data of 283 cities in China from 2003 to 2019, this paper constructs a super efficiency SBM-DEA model including unexpected outputs to evaluate ULGUE. Using a spatial Durbin model, we examine the spatial spillover effects of manufacturing and productive services agglomeration on ULGUE. The results show the following: (1) There has been fluctuation over the study period, which can be classified into three stages, and ULGUE in China as a whole is on the rise. (2) Chinese ULGUE has increased greatly in the western and northeastern regions, changed massively in the eastern region, and stayed largely steady in the middle region. The degree of manufacturing agglomeration is further improved, exhibiting a feature resembling a ladder, with high concentrations in the southeast coastal region and low concentrations in the interior. Production service industry agglomeration intensity has declined, revealing a more dispersed spatial pattern. (3) The rise in local ULGUE will have a beneficial impact on the ULGUE of spatially correlated regions, according to ULGUE’s relatively strong spillover effect. (4) Manufacturing agglomerations can enhance the ULGUE in the neighborhood, but it is not obvious how this will impact the local regions. The agglomeration of production service industry can enhance the improvement of ULGUE in local and spatially correlated regions, but the direct effect is weak. (5) The integration of the manufacturing and productive service industry does not quite strengthen its stimulatory effects on the growth of ULGUE.

Intelligent Platform Research System for the Highly Integrated Development of My Country's Electronics Manufacturing Industry and Service Industry

With the help of normative analysis, empirical analysis and comparative analysis, this article combines the characteristic facts and empirical data of the development of China's producer service industry and electronic manufacturing industry to deeply analyze the internal and dynamic factors of the development of the producer service industry and the factors affecting the development of China's producer service industry. On the basis of theoretical and empirical analysis, to explore the underlying reasons for the low level of development and development quality of China’s producer service industry and the low level of interaction and integration with the electronics manufacturing industry, an intelligent platform for integrated development based on deep learning has been established, enabling both parties fusion efficiency increased by 7.3%.

Study of the Global Economic Recession

Since 2020, the global economy and financial system have suffered the biggest demand and supply shock since the financial crisis in 2008 as the new pneumonia epidemic spread to almost all countries. Panic in international financial markets has been rising, and asset prices of stocks, bonds, currencies, commodities and other assets have fallen rapidly. This paper analyzes the impact of the epidemic on the global economic and financial system from different perspectives, including the supply chain, the Russia-Ukraine war, and the US interest rate hike. In this paper, we argue that since 2020, the "pandemic" of Newcastle pneumonia has caused a comprehensive impact on the manufacturing industry, service industry, public confidence, and social governance, and a liquidity crisis in the international financial markets. Whether the epidemic will evolve into a financial and economic crisis depends on the development of the epidemic and the effectiveness of preventive and control measures, on whether the epidemic will trigger corporate debt defaults and sovereign debt crises in some countries, and on whether a fall in oil prices or geopolitical conflicts will trigger financial and capital flow crises in emerging markets. Given the inevitable impact of the epidemic on the economic growth situation in various regions, the global economy is expected to fall into recession in the future.

Total Quality Transportation Through Deming’s 14 Points

Transportation organizations, particularly public transport corporations, have not followed the lead of manufacturing or other service industries in adopting Total Quality Management (TQM). In recent years, quality has become an important competitive strategy in the global market. In near future, due to World Trade Organization agreements, globalization, and competitiveness, transport organizations have no choice other than adopting TQM for their survival.This article presents a background on TQM and addresses the imperatives of using this strategy in transport organizations. The article examines total quality transportation (TQT) and its organizational structure and implementation model in relation to Deming’s 14 points. The model presented in this research provides enhanced tactics for transportation quality and customer satisfaction.

On the Service Transformation of Ningbo's Manufacturing Industry Considering the Potential of Ecological Benefits

This paper puts forward the service transformation approach of Ningbo manufacturing industry considering the potential of ecological benefits. By analyzing the current situation of service-oriented development of Ningbo's manufacturing industry, this paper summarizes the problems encountered in the process of service-oriented transformation of Ningbo's manufacturing industry, introduces the concept of ecological benefit potential, combines the characteristics of service-oriented transformation of Ningbo's manufacturing industry, finds the path of service-oriented transformation of Ningbo's manufacturing industry, constructs a grey relational model, analyzes the coupling relationship between Ningbo's manufacturing industry and service industry, and completes an analysis of the ways of transformation of service of Ningbo's manufacturing industry. The simulation results show that the proposed transformation path method can improve the problems existing in the service transformation of Ningbo manufacturing industry.

IT 서비스업의 글로벌 무역 네트워크 및 부가가치 무역의 특징 분석

Purpose: In order to take into account the importance of the IT services industry related to the 4th industrialrevolution and to supplement the limitations of the export/import analysis based on gross export statistics, weattempted to analyze the status and features of the value-added export network of IT services industry. Through thetrade network analysis, we suggest the necessity of policies to foster the IT service industry and provide policyrecommendations for industrial development.
 Research design, data, and methodology: This study uses the 2005 and 2014 World Input-Output Table (WIOT) todecompose gross exports into value-added exports according to gross exports decomposition methodology. We thenobtain the world trade matrix based on the domestic value-added statistics. By applying network analysismethodology to the world trade matrix, the characteristics and changes of the global value-added trade in IT servicesindustry were identified through centrality analysis and core-periphery analysis. In addition, this study identified thestatus of Korea and Japan’s IT services industry in the world value-added trade network.
 Results: The countries with the greatest influence in terms of domestic value-added exports in the IT services industryare the European Union (EU), the United States (USA), the United Kingdom (GBR), Canada (CAN), and India (IND). Incontrast to the IT manufacturing industry, where Korea, Japan, and China were among the core countries, Korea,Japan, and China were not among the core countries and remain as peripheral countries in the IT services industry. The ratio of domestic value-added exports to gross exports in Korea’s IT services industry is lower than that of theEU, USA, Japan, and China, and the ratio of foreign value-added exports to gross exports is higher than that of theUSA, Japan, and China. This fact can be seen as a structure in which Korea’s IT services firms import and inputintermediate goods from abroad and then export the processed final goods to the global market.
 Implications: Since the early 2,000s, Korea’s IT industry’s production and exports have grown significantly in volume, and its influence has been greatly strengthened in the global IT market. However, the strengthening of Korea’s influence on the global trade in the IT industry is mainly due to the growth of IT manufacturing industry, and the competitiveness imbalance between IT manufacturing and IT services industry is very severe. Therefore, it is necessary to take measures to strengthen the competitiveness of Korea’s IT services industry. First, it is necessary to overcome the foreign value-added import - processing production structure and strengthen value-added production capacity by investing in the improvement of human capital and technology in the IT services and software fields. Second, it is necessary to promote the globalization of firms through export support measures for the IT services industry. In fact, while major Korean firms have IT services affiliates, the sales of these affiliates are stable, and there is no incentive for overseas expansion. Export incentives for IT services firms should be developed to stimulate their overseas expansion.

Can Coordinated Development of Manufacturing and Information Communication Service Industries Boost Economic Resilience? An Empirical Study Based on China’s Provinces

Information and communication technology has supported industrial digitalization and brought profound changes to many industries. Under the influence of new technologies and applications, the production mode, enterprise form, business mode and employment mode of manufacturing have accelerated reform, which has effectively promoted the production efficiency and green development of manufacturing. In the face of the complicated and severe economic situation and the wave of industrial digitalization in the world today, it is necessary to study the influence of the coordinated development of manufacturing and information communication service industries (M&ICS industries) on economic resilience. Based on the data of China’s 30 provinces during 2010–2020, this paper estimates the economic resilience and the degree of coordinated development of M&ICS industries. Next, based on the setting of two spatial weight matrices, it uses a spatial econometric model to systematically analyze the influence of the coordinated development of M&ICS industries on economic resilience across China’s provinces. The research results show that the economic resilience across China’s provinces had significant positive spatial correlation. Moreover, the coordination between M&ICS industries had a significant positive effect on economic resilience; however, such an effect was concentrated mostly locally, and the spillover effect on surrounding regions was negative and nonsignificant. This study is of vital strategic significance and practical value to promoting both the resilience of the regional economy and the digital transformation of manufacturing.

Research on the integration and development of advanced manufacturing and modern service industries in Jiangsu Province

With the continuous development of the economy, the manufacturing and service industries have gradually shown a trend of integration. This study constructs the evaluation index system of the integration of the advanced manufacturing and modern service industries in Jiangsu Province from the three dimensions of integration scale, integration structure and integration efficiency. Finally measures the integration degree of the two industries in Jiangsu Province and the development of the specific three dimensions. The study found that: 1) Overall, the integration of advanced manufacturing and modern service industries in Jiangsu Province is at a moderate level of integration. 2) From the perspective of the scale of integration, from 2015 to 2017, the contribution ratio of advanced manufacturing industry is larger, and after 2017, the contribution ratio of modern service industry is larger; from the perspective of integration structure and integration efficiency, the overall contribution of modern service industry is higher than that of advanced manufacturing. The conclusions of this paper have reference value for promoting the integration and development of advanced manufacturing industry and modern service industry, and provide empirical evidence and suggestions for promoting the integration of the two industries in Jiangsu Province.