The importance of services inputs in enhancing manufacturing productivity and competitiveness has been well documented … strength of the interlinkage between the services and manufacturing sectors in India and China, using value-added and exports … when we use the value-added approach. Second, China's services value-added contribution is concentrated in traditional …

We distinguish the heterogeneous productivity spillovers from foreign direct investment (FDI) at the firm level. Based … domestic firm's FDI input share increases by 1 percentage point, its productivity increases by 2.15%, and (ii) if this firm … inputs --- a domestic firm enjoys a higher productivity if it gains access to more inputs sold by FDI firms (general …