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Analysis reveals IFDI boosts export competitiveness in high-end manufacturing, highlighting servitization effects.
The export competitiveness of high-end manufacturing industries is crucial for sustained national economic growth. This study investigates how inbound foreign direct investment (IFDI) affects the export competitiveness of China's high-end manufacturing industries through the mediating effect of servitization. Using data from 1995 to 2020, we analyze the impact of IFDI on both the input and output ends of servitization in high-end manufacturing. The results show that IFDI significantly enhances export competitiveness through the output end of servitization, while the mediating effect through the input end is not significant. Heterogeneity analysis reveals that the aerospace and pharmaceutical industries are less affected by servitization, whereas other industries benefit significantly. We suggest increasing innovation investment, expanding IFDI channels, and deepening the integration of service elements to enhance China's export competitiveness.
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Li et al. (2025) studied this question.
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