Production Fragmentation on Productivity: Based on Data from China´s Industries

It is no objection that international production fragmentation does have great improvements on industrial productivity. As the biggest developing country, China also benefits from the international production fragmentation. This study first provides firm proof to the improvements of China´s industrial productivity brought by the international production fragmentation in form of processing trade and general trade. Then this study focuses on the different impacts on industrial productivity brought by developed countries and under developed countries. The conclusion is that production fragmentation undertaking from developed countries does have greater improvements than that from developing countries.