A Study On The Relationship Among FDI?R&D And Total Factor Productivity

In recent years,China's economic growth slow down,the reform into “The Deep Water”,the dynamic mechanism of economic growth need to transform and optimize.Everyone focus on releasing new demand,creating new supply,stimulating the micro economy vitality,building?shaping and strengthening the long-term stable economic development,and the improvement of total factor productivity is the key to economic growth.In the new economic development environment,it is very important to study the impact of foreign direct investment and R&D investment on China's total factor productivity.Therefore,this paper starts from the relationship among FDI?R&D and total factor productivity,through theoretical analysis and empirical model,we analysis the effects of FDI?R&D and their interactions and other factors on China's total factor productivity,then point out the corresponding policies and suggestions to improve the economic growth accordingly.This paper is divided into six chapters.Chapter One introduces the research background,significance,method,content framework and article innovation;Chaper two collects and summarizes the domestic and foreign literatures on relevant issues,and summarizes the research and conclusion about the relationship among economic growth?FDI?R&D and total factor productivity;Chapter three ananysis the present situation of FDI?R&D and total factor productivity in China;The fourth chapter puts forward the research hypothesis,measurement model and variable description of this paper.In the fifth chapter,the ordinary least squares method?the random effect model?the fixed effect model and the generalized moment estimation(GMM)method are used to analyze the model.By comparing the empirical results of these four methods,the empirical research conclusion show that the growth of total factor productivity has the time interia;single factor of foreign direct investment has no obvious positive effect on the improvement of total factor productivity,but in general,it will promote the improvement of total factor productivity;the positive effect of R&D on total factor productivity is uncertain,but considering its lag,R&D significantly contributes to the growth of total factor productivity;the interaction of foreign direct investment and R&D will significantly contribute to the improvement of total factor productivity;the upgrading of industrial structure will significantly improve the total factor productivity;the increase in education investment which is not adopted to industrial structure will not significantly enhance the total factor productivity;the lower government-to-output ratio is conducive to the improvement of total factor productivity.Finally,this paper puts forward corresponding policy recommendations:Insist on innovation-driven development,focus on the contribution of total factor productivity to the economic growth;Focus on the overall coordination of promoting the introduction of foreign direct investment quality,increasing R&D investment intensity and optimizing the development of human capital allocation;Promote the improvement of market mechanism,Accelerate the adjustment of industrial structure upgrading and optimization;Implement the tax reduction policy,Promote the supply side reform actively.