The Research On The Impact Of Chinese Imports Of Intermediate Goods To The Total Factor Productivity

In the context of economic globalization and the development of international vertical specialization, the Imports of intermediate goods have developed rapidly. In the study period of paper, imports of intermediate goods increased by nearly 13 times. At the same time, China has become a "world factory" and the global value-added platform, rapid economic growth, technological progress is accelerating. TFP is an important indicator of the level of economic development, does the Imports of intermediate goods have the correlation to the China's industrial growth? This is the key issue of economic opening under conditions to be studied.Firstly, a detailed analysis of the impact of the mechanism of imports of intermediate goods to TFP, imports of intermediate goods have an impact on TFP through global production, vertical specialization and technology spillover. And key variables were calculated and analyzed, such as TFP, imports of intermediate goods, vertical specialization index, as well as he technology spillover scale of intermediate goods import. Then, based on the panel data on Chinese industries during 1997-2012, this paper estimated the effects of the intermediate products import in China on technological progress through the overall industry and industrial sector. The measurement results shows that the import of intermediate products favors Chinese technological advancement. From industrial side, the import of intermediate goods are difference between labour & resource-intensive industry and capital & technology-intensive industry, the former will hinder technological advancement, the latter has active influence on technological advancement.From the influence path,the labour & resource-intensive industry effects the technological progress dominantly through the vertical specialization,the capital & technology-intensive industry effects the technological progress depend on the technology spillover effect of intermediate goods import. From the control variables, R&D, capital intensity and the degree of nationalization are conducive to technological progress, human capital and FDI have negative effect on it.Finally, I think it should be a reasonable guide and encourage imports of intermediate goods to make full use of the two markets. At the same time,we need actively participate in international division of labor to seek higher ground on the value chain. We should also attach importance to training capability of independent innovation to enhance the technological absorptive capacity.