Will Servitization Empower Sustainable Development? The Impact of Manufacturing Servitization on the Green Development Efficiency in the Chinese Cities

The manufacturing industry has triggered severe environmental pollution problems while promoting urban economic growth. Low-carbon transformation and upgrading the manufacturing industry through manufacturing servitization (MS) are feasible to enhance urban green development efficiency (GDE). Based on the balanced panel data of 265 prefecture-level cities in China from 2000–2014, this paper analyzed the theoretical mechanism of MS affecting urban GDE and tested the impact of MS on urban GDE using the spatial Durbin model. The findings of the study are as follows: First, urban GDE in China shows a spatial pattern of high-level scattered distribution and low-level banded clustering during the study period. Second, MS significantly and robustly boosts urban GDE, which is more pronounced in low- and medium-tech industries and resource-based cities. Third, there is a positive spatial spillover effect of MS on urban GDE; local MS enhancement can promote the GDE growth of surrounding cities. Fourth, MS can enhance urban GDE through the intermediary paths of technology effect, structural effect, and allocation effect. During the study period, MS had a dampening effect on urban GDE through the scale effect. This study can provide a new perspective for enhancing urban GDE through MS transformation