Affiliations: [a] School of Economics, Shanghai University, Shanghai, China
| [b] School of International Trade and Economics, Central University of Finance and Economics, Beijing, China
| [c] Claremont Institute for Economic Policy Study, Claremont, CA, USA
Correspondence:
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Corresponding author. Linyue Li, School of International Trade and Economics, Central University of Finance and Economics, No. 39 South College Road, Haidian District, Beijing, China. Claremont Institute for Economic Policy Study, 150 E. 10th Street, Claremont, CA, USA. E-mail: [email protected].
Abstract: In this work, we study the impact of China’s services sector liberalization reform on the country’s manufacturing sector. In this paper we propose Fuzzy based association between service industry and Manufacturing Industry with performance evaluation of Manufacturing Industry based on different performance criteria. The results analysis of proposed work suggest that there is: a extremely important and constructive relationship between the existence of reserved services suppliers and the efficiency of downstream manufacturing companies; a constructive (yet unsteady) relationship between the existence of overseas services suppliers and manufacturing efficiency; and a important and adverse relationship between the extent of state-owned services providers and manufacturing productivity. Curiously, our results also suggest that given the unstable association between the presence of foreign services providers and manufacturing performance, overall imported services (including foreign services providers operating in China) have a highly significant and positive association with manufacturing productivity. In addition, taking into account firm heterogeneity, such as AI (artificial intelligence), our results suggest that there is no difference in the above effects of China’s services sector’s liberalization between those manufacturing firms that engage in importing and exporting and the manufacturing firms that do not.
Keywords: Liberalization, services, productivity, manufacturing, firm
heterogeneity, AI (artificial intelligence), fuzzy system
