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International Trade,Technological Progress and Productivity Growth of Chinese Industries

XIAOPING LI XIANXIANG LU(Zhongnan University of Economics and Law)ZHONGDI ZHU(Shanghai Institute of Foreign Trade)  
The new international trade theory shows that international trade can promote technological progress.This paper analyzes the impacts of exports and imports on productivity growth of Chinese industries using the DEA method to decompose the total factor productivity into technical efficiency and technological progress.We find that during the period 1998—2003 industries with higher trade intensities did not have higher technical or scale efficiencies than those with lower trade intensities.Exports had no significant correlation with productivity but imports were important for total factor productivity change and technological progress.The results have important policy implications for China that is aiming at transforming itself from a large trading country to a strong one.
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