The Influence Of Techological Progress On Foreign Direct Investment In The Equipment Manufacturing Industry Of Western China

Equipment manufacturing industry as the main body of China’s national economy has the current status of China’s speed change to China’s quality.But the conditions vary from place to place.The western region of China’s equipment manufacturing industry as one of the three major production bases, is very large in terms of input and output.But at the same time, it faces the problems such as low comprehensive benefit, weak core competitiveness, lack of scientific and technological talents, slow progress of technology, and so on. The factors that affect the choice of technological progress are independent research and development, technological improvement and other endogenous factors, such as domestic purchase, foreign direct investment and other exogenous factors.Currently, FDI has become an important force in promoting China’s industry economic development.Has FDI promoted technological progress of the Chinese enterprise?Currently there are some academic controversies about it. Some scholars believe that the “market for technology ”strategy is a failure in our country and the use of FDI has rejected the technological progress; however some scholars think that there is not conflict between the use of foreign capital and our own technological progress.This paper focuses on the research of the relationship between FDI and technological progress and the dynamic relationship between them.Part one describes the background and significance of this study,then put forward the aim, method and route of the study through combing the literature.Part two the present situation of technological progress the status of the equipment manufacturing industry of Western China,firstly elaborates on the Western equipment manufacturing industry development situation and its position in the national manufacturing.Then from the three aspects of the independent research and development, the introduction of foreign technology and the purchase of domestic technology,the status of Western equipment manufacturing industry technological progress were overall research.Part three selects the most appropriate method DEA Malmquist model to measure Western equipment manufacturing industry technological progress,get results of total factor productivity ofthe Western equipment manufacturing industry as a whole and the western provinces and cities in recent years,from the view of provinces and the whole,total factor productivity were analyzed and evaluated. The fourth part introduces the situation of the foreign direct investment FDI of Western equipment manufacturing industry, and then focus on FDI of the promoting effect in output, exports, innovation and other aspects and the inhibiting effect in the upgrading of the industrial structure, local enterprises research and development and other aspects in recent years of Western equipment manufacturing industry,carry on the theory analysis. Finally, the fifth part will western equipment manufacturing industry total factor productivity as FDI impact on technology progress research foundation, by constructing VAR model, Granger causality analysis and influence on study variables between for further empirical research.According to the current situation analysis and empirical analysis of the results of this article, proposed on the basis of manufacturing technology progress path selection Suggestions: the government of Western China should continue to strengthen the opening policy and improve our investment environment actively. We should exploit the good factors and avoid the bad ones in the course of attracting FDI and pay attention to the quantity of FDI. The government should play the more leading role in the technological progress of enterprises. And we should keep the unanimous goal of Western China’s economic development strategy and improving the ability of technological progress along with using FDI, and increase Western China’s comparative advantage benefit from the open economy.