Imports drive productivity growth in China's manufacturing industry, exports hinder progress.
The study looked at how imports and exports affect the productivity growth of China's manufacturing industry from 2002 to 2007. They found that the growth in productivity was mainly due to technological advancements rather than efficiency improvements. Importing goods had a positive impact on productivity and technological progress, while exporting goods had a negative impact on productivity growth and technological progress. Different sectors within the manufacturing industry were affected differently by import and export trade.