Research on the Interaction of China’s Knowledge-Intensive Business Services and Manufacturing Upgrading

Abstract

KIBS is a kind of advanced production factor which could increase the added value and the productivity of manufacturing in the global value chain by industry association effect. This paper empirically tests the dynamic relationship between KIBS and manufacturing upgrading by VAR model. The results show that there is a long-term dynamic equilibrium and causal relationship between KIBS and manufacturing. The positive effect of the former on the latter is obvious and long-lasting.