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The Impact of Productive Services Trade Competitiveness on the Export Performance of Chinese Manufacturing Firms

Co-author(s)
WANG Siyu
Trade Topics
Productive Services Trade

Based on Grossman and Esteban's (2008) task service model, this paper derives a mathematical model of how productive service trade competitiveness affects manufacturing firms’ production costs, and a theoretical model of how productive service trade competitiveness enhances manufacturing firms’export performance through the analysis of intermediate goods inputs.producer behavior and consumer preferences, And using the panel data of Chinese manufacturing firms from 2005 to 2013, the impact of China's productive service trade competitiveness on the export performance of manufacturing firms is tested, The results show that (1) China’s productive service trade competitiveness enhances the export performance of manufacturing firms.especially those in industries with higher demand for productive service inputs.(2) Different productive service industries do not have the same impact on the export performance of manufacturing enterprises, and intellectual property royalty services and communication, computer and information services have a greater role in improving the export performance of manufacturing enterprises. (3) There is heterogeneity in the impact of China's productive service trade competitiveness on the export performance of enterprises of different ownership.