Section Preference of Producer Service Resource and Intermediate Goods Import——Evidence from 34 Countries' Input and Output Data
- CHEN Xiaohua, LIU Hui & JIANG Li
- Zhejiang Sci-Tech University, 310018.
Through revising section preference recognizing model of Antràs et al (2012), this paper estimates the effects of section preference of producer service resources on intermediate goods import. The results show: Firstly the effects of section preference of producer service resources on intermediate goods import is displayed in a U shape, too much preference to upstream and downstream section can’t reduce a country’s independence on intermediate goods imports, but preference to middle-stream section will reduce independence on foreign intermediate goods; after factoring into geographic advantages for trade, economic development and the impact of financial crisis, the U shape still exist. Secondly, developing countries tend to prefer to incorporate producer services into the upstream and downstream of manufacturing industry, while developed countries prefer to the middle-stream; as a result, developed countries’ producer services promote intermediate goods very well while developing countries’ producer services didn’t have very positive effects on intermediate goods. Regrettably China’s producer service industries’ upstreamness index is the highest, so China’s section preference transformation pressure is the highest. Thirdly the popularization of high education will reduce the dependence on intermediate goods import, while more taxes, higher economic efficiency and more convenient trade will increase the dependence on intermediate goods import.
- Producer Service Resources, Section Preference, Intermediate Goods Import