| Abstract | The intrinsic request of deepening opening-up and transitional development, highlights the extremely importance of service trade development in our country. Based on cross-country, cross- industry panel data, and in highlighting heterogeneity of knowledge source, this paper reveals significant knowledge spillover of international service trade and its influence on native efficiency improvement in service industry, especially spillover effect of technology-intensive service trade and the feature of "north - south" type knowledge spillover. As being two most important channels of knowledge spillover, structure decomposition analysis shows that requirement of higher collaborative production determine more significant intra-industry knowledge spillover than inter-industry knowledge spillover. The study also reveals a reverse "U" shape structure of knowledge spillover, especially for intra-industry knowledge spillover, and complementary effect of knowledge spillover in different channels. |