Abstract:

Digitization is the development trend for international trade, and input servitization is an important engine for upgrading the manufacturing industry. Using the extended gravity model, this article analyzes the impact mechanism and interaction effect of trade digitization and manufacturing input servitization on China’s global value chain. As found in the study, servitization of manufacturing inputs promoted the status of China’s global value chain. However, their promotional effect was weakened when trading with countries with a high degree of digital trade. By decomposing the export value-added rate, servitization of manufacturing inputs and trade digitalization was shown to have negative interaction effects on the export value-added rate of final goods and re-exported intermediate goods, but positive interaction effects on the export value-added rate of directly exported intermediate goods and intermediate goods for domestic sales originally produced for exports. The interaction effect of trade digitization and servitization of manufacturing inputs helps to promote the growth of import and export trade by reducing price margins and improving quantity margins.

Key words: digitalization of trade, servitization of manufacturing inputs, global value chain, export value-added rate