This paper analyzes productivity with a directional distance function model by investigating convexity and non …-convexity in the Chinese banking sector. Two primary findings are summarized. First, there is a distinct change in productivity … experience local versus global technological change is small, indicating that productivity changes are driven by national rather …

trade-induced productivity gains (in this respect, however, India is an exception). These gains mainly stem from intra …-industry reallocation of resources among firms with different productivity levels. The gains are larger in import-competing sectors. There …