Advances in Management and Applied Economics

Servitization of Manufacturing Industry Export Enterprises, Multinational Corporation GVC Activities and Pollution Reduction in China

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• Abstract

   

  This paper measures manufacturing service input at the micro level of export enterprises to investigate the pollution reduction effects of manufacturing servitization and examines the mechanism from the perspective of GVC activities of multinational corporations. The study finds that (1) servitization generally reduces the pollution emission intensity of export enterprises, and this effect is widespread among enterprises of various ownership types, pollution-intensive and nonpollution-intensive enterprises, and enterprises in the eastern and western regions; (2) there is a "U-shaped" nonlinear effect of servitization on the pollution reduction of export enterprises, indicating that in the initial stage of servitization, the increase in service elements in manufacturing will lead to an increase in enterprise emissions, and only when the servitization degree reaches a certain threshold will a significant pollution reduction effect be observed; and (3) the "domestic-foreign" and "foreign-domestic" types of GVC activities characterizing the connections between multinational corporations and local enterprises have a moderating effect on the pollution reduction impact of servitization. This study has significant implications for promoting the green development of enterprises through manufacturing servitization in the context of GVCs.

   

  JEL classification numbers: F18, L60.

  Keywords: Manufacturing Servitization, Pollution Reduction, Inverted "U" Shape, Multinational Company GVC Activities.