The Impact of the Opening of Producer Services on the International Competitiveness of Manufacturing Industry

Abstract

Countries participating in the international division of labor each try to occupy the industrial highlands, obtain competitive advantages, and promote sustainability of economic development. Based on Porter’s Diamond model, it is widely believed that producer services are vital to support the manufacturing industry. Consequently, this paper selects samples of 55 countries and uses data from 2010 to 2017 to empirically test the impact of producer service’s opening on the export competitiveness of the manufacturing industry. The results show that the opening of producer services in a country promotes the improvement of international competitiveness of manufacturing industry, and the improvement effect is more significant in developed countries than in developing countries. Additionally, the negative impact of foreign capital access restrictions on the export competitiveness of the manufacturing industry is greater than the positive impact of service trade opening. It is also found that the restrictions on foreign capital’s opening in the financial sector have the biggest negative impact on manufacturing exports than that of other divisions of the producer service industry. To improve national competitiveness, it is suggested that the integration of service and manufacturing industries should be enhanced and to decrease FDI access to financial and transportation services restrictions.

Impact of Industry 4.0 Technology on International Posting of Workers

“…Factor conditions are necessary to compete in an industry (Porter, 1990, p. 71) which affects international competitive success (Yu et al, 2021). They are often grouped into five broad categories: human, physical, knowledge, and capital resources as well as infrastructure.…”

“…This is especially important for the manufacturing industry, which plays a significant role in the sustainable economic development of the country. The manufacturing industry spreads to other sectors, thereby increasing the overall productivity of the entire economy, enabling it to compete in the global market (Yu et al, 2021).…”

The role of university Knowledge Transfer Offices: Not just commercialize research outputs!

“…A su vez, (Lee et al, 2021) expresan que una combinación de las estrategias genéricas de costos y enfoque mejora la rentabilidad empresarial. Desde el "Diamante de Porter", (Yu et al, 2021) sostienen que el análisis de las industrias de apoyo es vital para obtener ventajas competitivas sostenidas y promover el desarrollo económico.…”

Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions

“…In 2020, Sholihah et al [131] proposed a methodology to help manufacturing enterprises analyze their development status and select the appropriate competencies to develop service-oriented strategies, and validate the applicability of the methods through practical applications in enterprises. In 2021, Yu et al [132] analyzed a sample of dozens of countries and manufacturing companies worldwide and concluded that servitization could increase its advantages and take over critical competitive capabilities internationally. In the same year, Liang et al [133] introduced a novel deep reinforcement learning approach to solve some combinatorial optimization problems of services in cloud manufacturing and demonstrated through comparative experiments that the method has a good performance both in terms of effectiveness and generalization capability.…”

“…Figure14. The articles about the field of manufacturing servitization[2,3,47,[123][124][125][126][127][128][129][130][131][132][133][134][135][136][137][138] .…”