| With modern technology and the rise of new economic growth theory, knowledge now is considered to be the key to economic prosperity. As an important economic phenomenon, knowledge spillover has received our increasing attention.The different stock of knowledge between areas or industries makes knowledge spillover in the process of knowledge and technology transfer. The characteristic of knowledge and technology output makes knowledge spillover have the capacity of external economy. Knowledge spillover increases the stock of knowledge for each economic entity, and then promotes the whole social skills and productivity levels. The majority of studies have indicated that the spillover effect comes mainly from international capital, advanced technology of developed countries. They often ignore the internal spillover between regions in a country. How does the knowledge spillover between our provinces affect the economic growth of our country? Different impacts on the economic growth caused by inter-regional knowledge spillover and knowledge spillover from abroad worth to be studied.In the analysis of foreign direct investment (FDI) knowledge spillover and inter-provincial R&D knowledge spillover on total factor productivity of China, we first construct the indicators of inter-provincial knowledge spillover, and then use our 28 provinces (excluding Tibet, Hong Kong, Macao and Taiwan, and Hainan being into Guangdong, Chongqing being into Sichuan) to measure the knowledge spillover from the adjacent provinces. Empirical research in the first part, using Solow residual method to estimate China's total factor productivity to make the analysis of knowledge spillover effects on total factor productivity between each province of China. Technological progress and technical efficiency are important factors to maintain economic stability and rapid growth, while Solow residual value of measured TFP can only represent a broad technological progress. In fact, TFP includes changes in technical efficiency and pure technical progress. We can get the decompositions of these two parts by the method of DEA. Using DEA method to measure the technical efficiency, technological progress and the Malmquist productivity index of China's 28 provinces during the years between 1990 and 2007, TFP growth is mainly driven by technological progress there, but instead, the accumulated growth rate of technical efficiency decline as the result appearing in this period. This article furthers FDI channels of international knowledge spillovers, inter-provincial R&D knowledge spillovers, R&D intensity, infrastructure, with technological progress and technical efficiency of an empirical test. We also test the human capital and technological gap factors how to affect technological progress effect of knowledge spillovers.The empirical results show that:First of all, R&D investment on total factor productivity in China plays a significant role in promoting. So by increasing investment on R&D can improve its total factor productivity. Then, the channels of international knowledge from FDI spillovers and inter-provincial R&D knowledge spillovers have a significant role in promoting on our broad technological progress and the technical advances while R &D spillover plays a more important role. The human capital of coastal provinces can absorb the knowledge spillovers from inter-provincial R&D spillover, but the knowledge spillover effects are not helpful. Inland provinces of human capital are not able to absorb knowledge spillovers from both inter-provincial R&D spillovers and international spillovers. Technology gap between the provinces of knowledge spillover effect play a negative role of technological progress. The paper also confirmed that infrastructure has a very significant positive role in promoting the total factor productivity in China. |