Trade in Producer Services and Technology Efficiency of China´s Manufacturing

This paper argues that import of producer services affects the technology efficiency of manufacturing. Panel data of classified manufacturing and service sector is used to quantify these effects in China. We find that the most obviously positive effects are found on capital-intensive and technology-intensive manufacturing; the import of other commercial service is the uppermost impetus; In addition, we found import of communication and architecture has negative effects on the technology efficiency of manufacturing.