Abstract:We use the micro-data of China’s service firms and China’s input-output data sheet to study the influences of producer services which act as intermediate inputs on the productivity of manufacturing firms. The results show that for most producer services (except education), their input have positive effects on China’s manufacturing firms’productivity. In addition, producer service input makes stronger positive effects on the middle and high productivity manufacturing firms than on the low productivity manufacturing firms. Thirdly, with the increasing input of high-tech productive services, their positive effects on manufacturing firms will be enhanced, while the impact on the productivity of the manufacturing firms is not obvious or will be weakened with more input of the middle and low-tech producer services. Finally, producer service increase manufacturing firm’s productivity on east and middle region, while inhibit manufacturing firm’s productivity on west region.