The Effect of Services Liberalization on Total Factor Productivity of Manufacturing Industries
Huo Jie
Abstract
Huo Jie
Abstract
Services are used as an essential input into a wide range of activities,services liberalization may lead to noticeable effect on downstream manufacturing industries.Based on 2003-2009 bank industry and manufacturing industries data in China,the paper studies the effect of services liberalization on total factor productivity of manufacturing industries.The results show that services liberalization has a significant impact on total factor productivity of manufacturing industries,entry of foreign enterprises,privatization of services industries and the level of competition in services industries have positive impact on total factor productivity of manufacturing industries,entry of foreign enterprises can enhance better total factor productivity than privatization of services industries.
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Services are used as an essential input into a wide range of activities,services liberalization may lead to noticeable effect on downstream manufacturing industries.Based on 2003-2009 bank industry and manufacturing industries data in China,the paper studies the effect of services liberalization on total factor productivity of manufacturing industries.The results show that services liberalization has a significant impact on total factor productivity of manufacturing industries,entry of foreign enterprises,privatization of services industries and the level of competition in services industries have positive impact on total factor productivity of manufacturing industries,entry of foreign enterprises can enhance better total factor productivity than privatization of services industries.
Key concepts: Business, Liberalization, Total factor productivity, Manufacturing, Productivity, Competition (biology), Industrial organization, Foreign ownership