Abstract: By making use of the production data of China’s manufacturing enterprises and the data of service industry FDI and foreign direct investment, this paper examines in depth the impact and the mechanism of service industry opening on the makeup ratio of the manufacturing enterprises. The findings show that the opening up of the service industry has a significant positive effect on the makeup ratio of manufacturing enterprises, and the service industry going abroad has a greater impact on the business makeup ratio. In the sub-sectors, the going abroad of such industries as leasing and business services, transportation, warehousing and postal services, information and communication services have a greater impact on the makeup ratio of the manufacturing enterprises, while the introduction in such industries as wholesale and retail services, financial services, scientific research and technical services has a greater impact. The results of the mechanism test show that the service industry opening up can affect the enterprise makeup ratio through the two channels of promoting new product innovation and improving enterprise productivity.

Key words: service industry openness; enterprise makeup ratio; innovation effect; productivity