Research On Impact Of Economic Openness Of China On Manufacturing Total Factor Productivity

Under“Made in China 2025”strategy,development of manufacturing industry is a general tendency.Total factor productivity is a measurement of technological progress indicators,and it is also the source of long-term economic growth.The international technology spillover and diffusion because of foreign trade and capital investment become the main factors of affecting the improvement of total factor productivity to a country or a region.So there is the reason to believe that trade openness and investment openness have some effect on manufacturing total factor productivity.Research on the influence between economic openness including two aspects of trade openness and investment openness and manufacturing total factor productivity has a certain value and significance.Firstly,the theories of economic openness and manufacturing total factor productivity are summarized.And then the appropriate measurement and calculation methods are selected to calculate economic openness and manufacturing total factor productivity of China.Through the analysis of trade openness and investment openness,it is found that economic openness has both ups and downs in recent years.The manufacturing total factor productivity and decomposition of China are calculated by using the method of DEA-Malmquist index,it is found that manufacturing total factor productivity is basically in a growth state recently.At last,this thesis uses panel data model to analyze the effects of economic openness on the manufacturing total factor productivity.The results show that the trade openness(goods and services trade openness),investment openness(openness of direct investment from foreign countries and foreign direct investment),the overall economic openness and manufacturing total factor productivity have significantly positive correlation.Through improving trade openness,investment openness and overall economic openness,the manufacturing total factor productivity can be enhanced.It can also improve manufacturing total factor productivity,to further improve the overall development of manufacturing industry.At last the relative suggestions are given through the conclusion.