Author(s)

BoYi Hu¹, Tong Liu^2,*

Affiliation(s)

¹ School of Business Administration, Zhongnan University of Economics and Law, Wuhan, Hubei, China.

² School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei, China.

Corresponding Author

Tong Liu

ABSTRACT

Based on the panel data of transnational industries from 2007 to 2014, this paper studies the impact of service trade liberalization on the integration of manufacturing and producer services (hereinafter referred to as the "M&P industries"), and studies the regulatory role of digital economy in it from both theoretical analysis and empirical test. The results show that the liberalization of service trade has a significant positive promoting effect on the integration of "M&P industries", which is enhanced by digital economy. This conclusion is still valid after a series of robustness tests such as instrumental variable method and alternative variable method. The results of heterogeneity analysis show that the liberalization of trade in warehousing and transportation services and financial and insurance services has a stronger positive promoting effect on the integration of the M&P industries. The digital economy plays a stronger positive moderating role in the liberalization of trade in wholesale and retail, information and communication, and financial and insurance services. The test of nonlinear regulating effect shows that the regulating effect of digital economy on the integration of "M&P industries" also has nonlinear characteristics. The higher the development level of digital economy, the stronger the marginal income of its positive regulating effect is, showing the feature of increasing marginal income.

KEYWORDS

Producer services; Industrial integration; Opening up of the service sector; Digital economy; Regulatory effect

CITE THIS PAPER

BoYi Hu, Tong Liu. Liberalization of service trade, digital economy and the integration of "M&P Industries". World Journal of Management Science. 2024, 2(3): 10-20. DOI: 10.61784/wms3031.

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