The Interactions Between Export And Productivity Of China’s Services Firms

The New-New Trade Theory expanded the economic study into firm-level. In China, the study about export and firm productivity remains in the manufacturing industry and without going deeper into the service industry. In an age of industry transformation and upgrading, in order to improve the overall economic strength and support the primary industry and the secondary industry, vigorously developing the service industry is needed. Therefore, studying the interactions between export and productivity of China’s services firms is of great significance.This paper used 397 firms during 2007 to 2012 to study the interactions between export and productivity of China’s services firms and in detail, studied two questions about export and productivity. The first question was whether the service firms support the Self-selection Effect, which is whether firms with high-level productivity are more likely to export. The second question was about the Learning-by-exporting Effect, which is whether export can improve firm’s productivity.This paper was organized as follows. The second chapter conducted the literature review form aspects of theoretical and empirical, domestic and foreign and the manufacturing industry and the service industry. The third chapter analyzed the mechanism of the interactions of firm’s export and productivity from the points of the Self-selection Effect and the Learning-by-exporting Effect, making a good theoretical foundation of the empirical part. The forth chapter analyzed the development situation and competitiveness the China’s service export from overall and micro-industry aspects with index and chart. By calculating TFP with DEA-Malmquist approach, the fifth chapter conducted the empirical tests about export and productivity of China’s services firms through three models with the method of OLS. The results were that the Self-selection Effect and the Learning-by-exporting Effect failed in the China’s service firms. The reasons included the service export still focus on the traditional service industry, the sunk cost is small in service firms and the imperfect marketing system of China. The last chapter put forward advices from aspects of the structure of service export, brand-building and the mergence of the manufacturing and the service industry, and indicated the studying points in the future.