Service Input Quality and Manufacturing Functional Upgrading
With the strengthening of trade sanctions and technology blockade measures from Western countries,the function of China's manufacturing industry is at risk of being blocked in low-end production stages.By defining functional upgrading as the transfer of industrial produc-tion to high-end production stages,this paper uses multinational manufacturing subsector panel data to study the impact of service input quality on functional upgrading in the manufacturing industry.We found that improving the quality of service input can effectively promote the func-tional upgrading of manufacturing sectors,especially the shift of the focus of manufacturing production to management and R&D functions.Heterogeneity research shows that compared with foreign service input,improvement in the quality of domestic service input has a more signifi-cant impact on functional upgrading,and high-skill manufacturing is more strongly promoted by improvements in the quality of service input.This article provides a transnational perspective on the relationship between manufacturing input service quality and functional upgrading and pro-vides corresponding empirical reference for issues such as breaking through functional lock-in in the context of value chain reconstruction.
Input Service QualityFunctional UpgradingGlobal Value Chains