Abstract | This article estimates the length of the supply chain in the upstream and downstream link by 120 input-output tables in 1997, 2002, 2007 and 2012. Based on the result, it inspects impact of extension of service supply chain on total factor productivity, which is from the perspective of the global value chain and the national value chain. The overall study shows :first,when service supply chain extends 1% towards upstream, the TFP in service will improve 0.148%, however, the extension towards downstream will inhibit TFP in service. Second,The promotion effect of service supply chain extension on TFP in the national value chain displays higher than it is in the global value chain. Third, it is found that the extension of length on service supply chain to consumer service sector and producer sector will increase TFP significantly, on the other hand, if it extends to transport sector, the TFP will be suppressed. In addition, extension of supply chain’s length towards financial services in national value chain will promote the total factor productivity. Therefore, strengthening the quality of service elements in the supply chain, improving the management capacity of the value chain and extending the length of the supply chain will increase service productivity and have important policy implications for achieving long-term and stable economic growth. |